PSX Daily Market Review 20 Sep. 2016

The Bench Mark KSE100 Index Opened at 40363.68 points and posted day high of 40542.64 while day low remain same as opening price and trading session suspended at 40414.72 points with net change of 51.04 points and net trading volume of 282.06 million shares during last trading session. Daily trading volume of KSE100 listed companies increased by 53.2 million shares or 23.24% on DOD bases. Market Capitalization of KSE100 and ALLShare Indices increased by 2.62, 39.9 billion Rs or 0.12 and 0.42 percent respectively but KSE30 capitalization dropped by 2.02 billion Rs or 0.14% on DOD bases.
Foreign Investors remain in net selling of 36.34 million shares and net value of foreign inflow dropped by 10.64 million US Dollars. Categorically Foreign Individuals and Overseas Pakistanis remain in net buying of 0.13 and 0.18 million shares but Foreign Corporates remain in net selling of 36.65 million shares. While on the other hand Local Individuals, Companies and Mutual Funds remain in net buying of 42.87, 7.52 and 1.14 million shares respectively but Local Banks and Brokers remain in net selling of 12.22 ad 13.08 million shares respectively.Foreign Corporate Investors are losing their confidence in PSX since start of Sep. and they are trying to off load their positions as since start of Sep.till date they have offloaded their holdings by 52.89 milion shares which shows that either they are trying to take exit or they have initiated profit booking strategy. While on the other hand all local corporate entities are also in net selling except Mutual Fuds. Mutual Funds net trading volume is in buying and they have added 31.22 million shares in this month till date to their buying but Brokers, Companies and Banks/DFIs are in net selling of 80.91, 24.11 and36.84 million shares respectively which clrealy indicates that either they are trying to book profits or they are trying to offload their buyings for any correction expected in near future.

The Bench Mark KSE100 Index was moving in an upward price channel on daily and weekly charts but right now it have penetrated its daily chart in bearish direction. Its also capped by a resistant trend line on Daily Chart which can push it back from 40879 points while first suportive region after this pullback would be 40113 points and second one would be 39336 points. On bases of Technical Analysis its not recommended to intiate massive new buying at PSX as its expected that it can start a correction from upcoming 400 points, but right now some selective shares are looking attractive as they already have completed their corrections and they will support index from massive crash during correction so new buying could be initiated in only selective shares. DGKC, ENGRO and FFBL are lookig attractive on current prices as they already have completed their corrections.

KSE100 Index have completed its bullish Elliot Wave and right now its ready for a pull back of 50-61% of its last bullish rally which would be called a correction during that move it will try to complete its three corrective moves.

Major International Indices closed with a mixed trend during last trading session as Dow Jones(US30) and S&P500 closed with a marginal positive change of 8 and 15 points while NASDAQ100 closed 19 points down. FTSE(UK100) closed 26 points up while DAX30 closed with no change from previous trading session, KSE100 index have shown symmetry and it closed with a slight positive change of 51.04 points during last trading session.