PSX Daily Market Review 24 Nov. 2016

The Bench Market KSE100 Index Opened at 42631.58, posted day high of 42923.42 and day low of 42582.41 during last trading session. The session suspended at 42901.02 with net change of 269.44 points and net trading volume of 144.49 million shares. Daily trading volume of KSE100 listed companies increased by 21.61 million shares or 17.58% on DOD bases.
Foreign Investors remained in net selling position of 8.93 million shares and net value of Foreign Inflow dropped by 6.73 million US Dollars.Categorically Foreign Individuals, Corporates and Overseas Pakistanis remained in net selling position of 1.16, 0.92 and 6.85 million shares respectively. While on the other side, Local Banks, Mutual Funds and Brokers remained in net buying position of 1.07, 8.64 and 12.05 million shares respectively but Local Individuals and Companies remained in net selling position of 7.46 and 5.87 million shares respectively.

Most Asian stock markets fell on Thursday as upbeat economic data strengthened the prospect for higher U.S. interest rates, while the dollar bull run continued as U.S. bond yields hovered near multi-year highs. Japanese stocks swam against the tide and rose to a near 11-month high as the yen weakened and after Wall Street shares closed at record highs overnight. The dollar index against major currencies rose nearly 0.2 percent to 101.84 .DXY, not far from 101.91 touched overnight, its highest since March 2003. The greenback drew support from a further rise in U.S. Treasury yields. The two-year yield US2YT=RR hit its highest levels since April 2010 on Wednesday as the market continued to bet that the Trump administration will increase debt-funded spending and spur higher growth and inflation.
After senators blasted India for escalating tensions along the Line of Control (LoC) and targeting civilian populations on Wednesday, Chairman Mian Raza Rabbani summoned Adviser to the Prime Minister on Foreign Affairs Sartaj Aziz to the house on Thursday (today) to explain why the United Nations Security Council had not been moved against blatant violations by India.
The government has released as many as Rs 816.713 million for various projects of Petroleum and Natural Resources Division under Public Sector Development Programme (PSDP) for the fiscal year 2016-17.In total, the government has allocated Rs 919.714 million for various ongoing and new projects of the Petroleum and Natural Resource Division in the PSDP of current fiscal year.
The state-run Oil and Gas Development Company Ltd (OGDCL) on Wednesday hit a record production level of 50,172 barrels per day (bpd) of oil, securing 57 per cent share in total production of about 88,000 bpd. Oil and Gas Development Company Limited (OGDCL) after almost one decade has resumed seismic surveys in Pasni, Awaran and other areas of militancy-hit Balochistan to explore oil/gas reservoirs.
Fertilizer industry has paid over Rs 109 billion as Gas Infrastructure Development Cess (GIDC) up to October 2016 which is highest among all the sectors/ industries. Latest data revealed that among other sectors Fertilizer sector is top contributor of GIDC. Within the Fertilizer sector, Fauji Fertilizer Company Limited (FFC) paid Rs 73 billion approximately 70 percent of the total contribution of GIDC in the said sector.
SHEL,ASTL, FDIBL and MUGHAL along with Textile Sector and Steel Sector are looking attractive on Intra-day and short term bases, they can lead the market in positive direction. But Pharma Sector could resist against bullish trend of market and can be a part of laggards.

For Current trading session, KSE100 Index may face a strong resistance from its daily double top around 43090 points region. Also it is capped by a resistant trend line at 43567 on Daily Chart. The daily RSI and Stochastic have generated crossovers for a short term pullback towards 43000 points. For current trading session, swing trading strategy with trailing stop loss could be beneficial as if Index would not be able to close above 43091 level, then it can be pushed back towards 42460 points.