PSX Daily Market Review 19 May 2016

The Bench Mark KSE100 Index Opened at 36137.12 points and posted high of 36366.20 while Day low remain same as opening during last trading session while session suspended at 36318.21 points with net change of 181.09 poits and net trading volume of 134.35 million shares.Daily trading volume of KSE100 listed companies Dropped by 27.38 million shares or16.93% on DOD bases. Market Capitalization of KSE100, ALLSHR and KSE30 Indices increased by 9.68, 21.47 and 6.9 billion Rs or 0.50%, 0.29% and 0.54% respectively on DOD bases.
Foreign Investors turned back to net buying and they remain in net buying of 1.58 million shares and net value of Foreign inflow increased by 0.75 million US Dollars. Categorically Foreign Individuals and Corporates remain in net buying of 13439 shares nad 2.23 million shares but Overseas Pakistanis remain in net selling of 0.66 million shares while on the other hand Local Individuals, and Banks reamin in net buying of 9.13 and 1.16 million shares but Companies, Mutual Funds and Brokers remain in net selling of 3.92, 5.26 and 3.6 million shares respectively.
FML, MCB and FFC remain in top thrree index movers and they pushed KSE100 index into positive zone by 33.77, 31.32 and 19.25 points with net price change of 9.58, 3.76 and 1.47 Rs/shares respectively while KTML, ENGRO and FCCL remain top thee index shakers and they tried to drag index in negative zone by -5.27, -4.85 and -4.79 points with net price change of -1.33, -0.99 and -0.35 Rs/share respectively during trading session of 18th May 2016.

The Bench Mark KSE100 Index is getting resistance from resistant trend line of its bullish trend channel along with a strong horizontal resistant region at its history high. Last trading session closed with a mixed trend and have shown that investors are not confident enough to initiate new trades which will force market to initiate a new trend on either side. During last trading session American Oil Inventories Data reliesed which was not in favour of Crude oil prices as  American Stocks are piling up and data released was against all expectations as it was forecasted that Inventories would be negative around 3.1 million barrels on WOW bases but in actual figures stocks increased by 1.3 million barrels. As per reaction to these figures  WTI Crude Oil closed 0.52 $/bbl(-1.07%) down on NYMEX while Brent also closed 0.84 $/bbl(-1.7%) down on The ICE and these factors would try to push index in negative zone on Intraday bases as major stack holder scripts of KSE100 are from oil and banking sector.  For today market have supportive regions around 36126 and 35976 while resistant regions stand around 36471 and 36647 points. If Market will become able to close above 36647 then next target would 37940 points. But as long as 36647 is sustained as a resistance a correction can be witnessed in Market. Right now its time to be cautious while initiating new trades at PSX platform as breakage of either side will call for a new trend. For current trading session market seems in bearish direction but on intra-day bases a slight upward spike can be witnessed durring session.

On weekly bases KSE100 Index have fulfilled its 100% correction and right now its getting resistance from a horizontal resistant region along with resistant trend line of its bullish trend channel. Since last 6000 points market have not corrected its move and right now a serious correction could be witnessed in comming weeks. On Weekly bases a correction towards 35606 and 34934 points regions are required for a futher bullish run.

Major Indices around the Globe reflected a mixed trend during trading session of 18th May 2016, As Dow Jones(US30) and S&P500 closed in negative zone with net change of -22 points and -2 points respectively while FTSE100 and DAX30 closed in positve zone net change of 1 point and 89 points respectively. While KSE100 Index also closed positive with net change of 181.09 points.