PSX Daily Market Review 14 Nov. 2016

The Bench Mark KSE100 Index Opened at 42703.99, posted day high of 42949.16 and day low of 42497.73. The session suspended at 42849.12 with net change of 145.13 points and trading volume of 213.16 million shares. Daily trading volume of KSE100 listed companies dropped by 19.14 million shares or 8.24% on DOD bases.
Foreign Investors remained in net buying position of 4.1 million shares but net value of Foreign inflow dropped by 3.85 million US Dollars. Categorically Foreign Corporates and Overseas Pakistanis remained in net buying position of 1.93 and 2.7 million shares respectively. Foreign Individuals remained in net selling position of 0.54 million shares while on the other hand Local Individuals, Companies and Brokers remained in net buying position of 0.82, 2.3 and 9.36 million shares respectively. Banks and Mutual Funds remained in net selling position of 5.47 and 10.25 million shares respectively.

Crude Oil prices remained under pressure in Japanese and Chinese sessions. However, its getting support from its 61.8% correction on intraday bases around 44.10 USD/bbl. Reversal from supportive region of 44.10 can call for an expansion towards 45.89 and 46.90 USD/bbl. This would be a positive aspect for PSX as it will generate some positive sentiment in short term for intraday traders of Oil Sector.
Islamabad Chamber of Commerce and Industry has welcomed the start of Chinese trade convoys to Pakistan which arrived at Gwadar through the western route of China-Pakistan Economic Corridor (CPEC).The convoy is carrying Chinese goods for export to the Middle East and Africa and termed it a positive development for the economy of the country. President, Islamabad Chamber of Commerce and Industry Khalid Iqbal Malik said that CPEC was considered a game-changer for Pakistan
Director General (DG) National Accountability Bureau (NAB) Khyber Pakhtunkhwa has ordered freezing of the properties of accused Iftikhar Ahmed, Cashier National Bank of Pakistan Peshawar for alleged involvement in accumulation of assets beyond his known sources of income through embezzlement of pension funds at National Bank of Pakistan, said a press release issued here on Friday.
The U.S. dollar touched a nine-month peak in Asia on Monday as the risk of faster domestic inflation and wider budget deficits sent Treasury yields ever higher, a painful mix for assets in many emerging market countries.
Domestic mills are buying good quality cottons increasingly for fear that higher grade lint will deplete in the market in the foreseeable future. Thus the tone of the cotton market was generally quite steady on Thursday as mills buying resulted in good turnover.
PKGS, SNGP, LUCK, SSGC and FCCL are looking attractive on Intra-day and short term bases, they can lead the market in positive direction. On the other side, ENGRO, ATRL and PSO,will remain under pressure.

KSE100 Index has penetrated its daily resistant trend line in upward direction. However, its still capped by rising resistant trend line and it has not been able to close above that region. This could be dangerous for bulls as Stochastic and RSI are not in further bullish mode and MACD is also in reversal mode. Hence, its advised to trade with caution.