PSX Daily Market Review 21 Nov. 2016

The Bench Mark KSE100 Index Opened at 42411.80 points, posted day high of 42505.70 and day low of 42253.84 while session suspended at 42324.94 points with net change of 86.86 points and net trading volume of 106.05 million shares. Daily trading volume of KSE100 listed companies dropped by 34.02 million shares or 24.29% on DOD bases.
Foreign Investors remained in net selling position of 2.47 milion shares while net value of Foreign inflow dropped by 12.86 million US Dollars. Categorically, Foreign Individuals and Corporates remained in net selling position of 0.4 and 5.34 million shares respectively but Overseas Pakistanis remained in net selling position of 3.27 million shares. While on the other hand, Local Individuals and Banks remained in net buying position of 7.12 and 0.77 million shares respectively but Local Companies, Mutual Funds and Brokers remained in net selling position of 7.59, 1.17 and 0.15 million shares respectively.

Asian shares were on the defensive on Monday, undermined by fears that the strength in the U.S. dollar and rising U.S. bond yields since Donald Trump election to president could accelerate fund outflows from emerging markets.
Prices of seed cotton (phutti) touched seasonal high on the cotton market on Saturday in the process of sustained buying of quality lint, dealers said. The official spot rate was higher by Rs 50 to Rs 6150, dealers said. In Sindh, seed cotton prices were at Rs 2200-3200, they said, in Punjab, phutti rates picked up Rs 100-200 at Rs 3000 and Rs 3600, as per 40 kg, they added
The manufacturers-cum-exporters of textile sector have been allowed to avail 1 to 4 percent drawback of local taxes and levies (DLTL) on annual basis taking into account the freight on board (FOB)-realised values of enhanced exports for 2015-16. According to the order that is Drawback of Local Taxes and Levies 2016-17 issued by the Ministry of Textile Industry here on Friday, the drawback will be available on annual basis on FOB-realised values of enhanced exports for shipments made during 2015-16 if increased beyond 10% over last year exports ie 2014-15.
A Korean delegation has shown interest in setting up power plant in Hub Industrial Area. In its visit to Lasbela Chamber of Commerce & Industry (LCCI) here on Saturday, President LCCI, Ismail Suttar has informed that a delegation of M/s. ES Group, Korea visited the Lasbela held a meeting with him and Managing Director, Lasbela Industrial Estate Development Authority (LIEDA) Sohail Mirza.
Pakistan oil supplies are facing serious disruption due to pipeline and port congestion, forcing oil companies to go against standard operating procedures amid acute storage constraints. Consequently, stocks of the two main petroleum products — motor gasoline and high-speed diesel — are short of the mandatory strategic levels, at a time when the country’s borders are in a state of heightened tension
SMBL,MUREB, MUGHAL, LUCK and ATRL are looking attractive on Intra-day and short term bases, they can lead the market in positive direction. On the other side, SEARL, ENGRO and PAKT,will remain under pressure.

KSE100 Index is capped by a resistant trend line at 43249 on Daily Chart and it has penetrated its supportive regions of 42479 and 42460 in bearish direction and right now supportive region stands at 42260 points from a horizontal support or double bottom. Daily Stochastic and Moving Average over RSI(MAORSI) have generated bearish crossovers which is a positive sign for a healthy correction, which for the current trading sessions stands at 42490 and 42527 points.