PSX Daily Market Review 25 May 2016

The Bench Mark KSE100 Index opened at 36723.35, posted day high of 36794.49 points and dropped back towards day low of 36553.78 during last trading session while session suspended at 36582.35 points with net change of -141.00 points and net trading volume of 169.13 million shares. Daily trading volume of KSE100 listed companies increased by 0.40 million shares or 0.23% on DOD bases. Market Capitalization of KSE100, ALLSHR and KSE30 Indices dropped by 7.5, 31.4 and 8.47 billion Rs or 0.38%, 0.42% and 0.65% respectively on DOD bases.
Foreign Investors turned back to buying again during last trading session and they remain in net buying of 3.94 million shares and net value of Foreign Inflow increased by 2.26 million US Dollars. Categorically Foreign Individuals and Overseas Pakistanis remain in net buying of 0.23 and 5.03 million shares respectively but Foreign Corporates remain in net selling of 1.33 million shares, while on the other hand Local Individuals, Companies, Banks and Brokers remain in net selling of 4.06, 0.23, 2.39 and 6.68 million shares respectively but Mutual Funds remain in net buying of 6.53 million shares.
FML, KEL and NRL remain in top three Index movers and they tried to push KSE100 Index in positive zone by 37.12, 12.40 and 4.54 points with net price change of 10.53, 0.24 and 9.43 Rs/share respectively while HUBC, MCB and OGDC remain in top three index shakers and they have dragged KSE100 Index in negative zone -40.96, -35.82 and -30.78 points with net price change of -2.91, -3.94 and -2.55 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 have came out of consoludation behaviour in international market and closed in positve zone during last trading session of 24th May 2016 WTI crude Oil closed at 49.20 $/bbl with net change of 1.14 $/bbl(2.37%) on NYMEX while Brent also closed at 49.01 with net change of 0.65 $/bbl(1.34%) on The ICE and these factors could push KSE100 Index in positive zone on intra-day bases.

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 closed in positive zone during last trading session with net change of 117, 223, 30.9 and 295 points or 1.91%, 1.27%, 1.50% and 3.01% respectively on DOD bases but KSE100 Index closed with net loss of 141.00 points on DOD bases.