PSX Daily Market Review 24 May 2016

The Bench Mark KSE100 Index Opened at 36693.50 and posted day high of 36752.62 and dropped back towards day low of 36433.48 points during last trading session while session suspended at 36723.35 points with net change of 29.85 points and net trading volume of 168.73 million shares. Daily trading volume of KSE100 listed companies dropped by 4.94 million shares or -2.84% on DOD bases. Market Capitalization of ALLSHR and KSE30 Indices dropped by 3.05 and 2.05 billion Rs or -0.04% and -0.16% respectively while Capitalization of KSE100 Index increased by 1.5 billion Rs or 0.08% on DOD bases.
Foreign Investors remain in net selling of 8.25 million shares and net value of Foreign Inflow dropped by 4.46 million US Dollars. Categorically Foreign Corporates and Overseas Pakistanis remain in net selling of 7.5 and 0.89 million shares respectively but foreign individuals remain in net buying of 0.15 million shares while on the other hand Local Individuals and Brokers remain in net buying of 31.83 and 0.78 milion shares respectively but Local Companies, Mutual Funds and Banks remain in net selling of 17.79, 12.59 and 6.28 million shares respectively.
HUBC, FML and ENGRO remain in top three index movers and they have pushed KSE100 Index in positive zone by 46.87, 38.67 and 29.65 points with net price change of 3.33, 10.97 and 6.05 Rs/share respectively. While MCB, HBL and UBL remain top three Index shakers and they have tried to push KSE100 index in negative zone by -99.22, -64.48 and -40.96 points with net price change of -11.91, -5.22 and -4.47 Rs/share respectively during last trading session.

The Bench mark KSE100 index have penetrated two major resistant levels of 36471.68 and 36647 points during previous trading sessions and now it have resistaces ahead at 36890 and 37000 points while supportive regions stand around 36471.68 and 36126 points for current trading session. Its not becoming able to close above or penetrate its major resistance which falls on resistant trend line of its bullish trend channel. Penetration of that line will all for 37972 points region which falls on resistant trend line of its long term bullish tren channel. where it will face a major resistance from its weekly Elliot Wave and that level would push index back into negative zone. Oil prices are showing consoludation behaviour in international market which is also an alarming factor for KSE100 index as during trading session of 23rd May 2016 WTI crude Oil closed at 48.07 $/bbl with net change of -0.14 $/bbl(-0.29%) on NYMEX while Brent also closed at 48.37 with a slight negative change of -0.25 $/bbl(-0.51%) on The ICE.

KSE100 Index is about to complete fifth wave of its bullish Elliot Wave on weekly chart, on technical bases that fifth wave would have to be completed before 37972, on completion of that wave market would start a correction or ABC formation which could drag index towards a correction of 61.8% of this bullish trend. Before completion of this fifth or last wave a slight correction can be expected as 3rd and 5th secondary waves are still pending in this primary wave.

PSX performed against all major indices around the Globe as FTSE(UK100), Dow Jones(US300), S&p500(SPX500) and DAX30 slipped during last trading session and closed in negative zone with net change of -19, -11, -4.9 and -85 points or -0.31%, -0.06%, -0.24% and -0.86% respectively on DOD bases but KSE100 Index closed with net gain of 29.85 points on DOD bases.