Previous Session Recap
Trading volume at PSX floor increased by 99.78 million shares or 39.05%, DoD basis. Whereas, the KSE100 Index opened at 47482.08 with a negative gap of 126.56, posted a day high of 48088.63 and day low of 47369.87 during the last trading session while the session suspended at 47442.73 with a net change of -165.91 points and a net trading volume of 107.37 million shares. Daily trading volume of KSE100 listed companies increased by 32.57 million shares or 43.54%, DoD basis.
Foreign Investors remained in a net selling position of 22.34 million shares and the net value of Foreign Inflow dropped by 9.7 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani investors remained in net selling positions of 13.73 and 8.64 million shares but Foreign Individual investors remained in a net buying of 37200 shares. While on the other side, Local Individuals, Companies and Banks remained in net selling positions of 13.72, 10.86 and 0.11 million shares, respectively. Local NBFCs, Mutual Funds and Brokers remained in net buying positions of 5.89, 3.96 and 37.34 million shares, respectively.
Analytical Review
Asian stocks were steady on Friday, appearing to take in stride the resumption of the U.S. technology rout overnight, while the dollar held near a two-week high after solid economic data backed the case for tighter U.S. monetary policy. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was flat, on track to end the week down 0.7 percent. Japanese Nikkei .N225 jumped 0.5 percent, narrowing its loss for the week to 0.4 percent. MSCI Pakistan Standard (Large and Middle Capp) droppped by 1.27% while MSCI Pakistan IMI Index (Small, Middle and Large Cap) dropped by 0.56% on DoD basis during last trading session.
Army is being engaged to stop illegal forest harvesting. Khyber Pakhtunkhwa Chief Minister Pervez Khattak on Thursday said his government was engaging the Pakistan Army to check the illegal harvesting of natural forests in the province and act against culprits. Giving a policy statement in the provincial assembly, the CM said political elites and lawmakers had facilitated the ‘timber mafia’ in the past by approving forest policies in the name of windfall trees.
The Balochistan government plans to spend Rs328.5 billion on its operations and infrastructure development in the province during the next financial year despite a much smaller estimated resource envelope of Rs276.4bn, showing a hefty deficit of Rs52.1bn or 15pc of the total budget outlay. More than two-fifths (Rs140.7bn) of the total proposed expenditure will be spent on pay and pensions of provincial government employees and well over a quarter (Rs86bn) on the development of social and economic infrastructure to ‘reap the benefits of the China-Pakistan Economic Corridor (CPEC)’.
The Market is expected to remain volatile today. We advise Traders to exercise caution. Buying on dips and booking gains on strength is recommended
Technical Analysis
The Benchmark KSE100 Index is caged in a descending wedge on daily chart and finding support from supportive trend line of its bullish channel, which is pushing the index back since last three trading sessions. Daily Stochastic is ready for a pull back if index sustains 46866 during the current trading session, with supportive regions around 46866 and 46550 if it penetrates below 47230 region. At 46550 , 61.8% expansion of last 50% correction would be completed and below that level index would enter into a new bearish zone towards 44500, for a 100% expansion of its last bearish correction. For current trading session, trading with strict stop loss is recommended. Index would not enter into bullish zone until it closes above 48560. As of now, bearish momentum is gradually becoming stronger with every passing day, but closing above 48560 will change market sentiment on short term basis.
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