PSX Daily Market Review 15 Nov. 2016

The Bench Mark KSE100 Index Opened at 42849.12, posted day high of 43084.64 and day low of 42400.30. The session suspended at 42525.93 points with net change of -323.19 points and net trading volume of 258.66 million shares. Daily trading volume of KSE100 listed companies increased by 45.5 million shares or 21.34% on DOD bases.
Foreign Investors remained in net selling position of 8.03 million shares and net value of Foreign Inflow dropped by 6.76 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net buying position of 4500 shares and 5.92 million shares respectively. Foreign Corporates remained in net selling position of 13.96 million shares. While on the other hand, Local Individuals and Brokers remained in net buying position of 35.91 and 6.23 million shares but Local Companies, Banks and Mutual Funds remained in net selling position of 8.31, 24.9 and 7.47 million shares respectively.

Government has rejected the summary of Oil and Gas Regulatory Authority for the increase of gas prices, Radio Pakistan reported. Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said in Islamabad that gas prices will remain unchanged. He said Ogra has been informed about this decision accordingly. Prime Minister Muhammad Nawaz Sharif had made it clear that no increase will be made in gas prices for the domestic consumers.
Non-Performing Loans (NPLs) of the banking industry posted a phenomenal increase of over Rs 25 billion during the first nine months (January-September) of this calendar year (CY16). Bankers said the massive surge in NPLs is not a good sign for the industry and banks should take certain measures to arrest the increasing trend.
Demonstrations protesting the U.S. presidential election victory of Republican Donald Trump entered their second week on Monday, with thousands of students chanting phrases like Not My President after walking out of classes across the country.
The U.S. dollar hovered near on a 14-year high on Tuesday and Treasury yields extended their rise as investors braced for higher inflation in the United States amid expectations of fiscal expansionary polices under Donald Trump presidency.
The Executive Board of Asian Development Bank (ADB) will approve four projects for Pakistan with a total loan of about $700 million next week. Sharing details with journalists on Monday, ADB Country Director Werner Liepach said these projects cover clean energy, disaster risk management, canal extension and public-private partnership investment. The four projects together cover half of the ADB’s project loans for Pakistan in 2016.
POL, FLYNG;, LUCKand ASTL are looking attractive on Intra-day and short term bases, they can lead the market in positive direction. On the other side, 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. Right now an evening star is created on daily chart which can call for a further dip.