PSX Daily Market Review 26 May 2016

The Bench Mark KSE100 Index Opened at 36582.35 and posted day high of 36767.24 dropped back towards day low of 3483.21 points during last trading session while session suspended at 36499.43 points with net change of -82.92 points and net trading volume of 119.47 million shares. Daily trading volume of KSE100 listed companies dropped by 49.66 million shares or 29.36% on DOD bases. Market Capitalization of KSE100, ALLSHR and KSE30 Indices dropped by 4.4, 9.07 and 3.69 billion Rs or 0.23%, 0.12% and 0.28% respectively on DOD bases.
Foreign Investors remain in net selling of 9.85 million shares and net value of Foreign Inflow dropped by 1.36 million US Dollars. Categorically Foreign Individuals and Corporates remain in net selling of 35600 shares and 10.81 million shares but Overseas Pakistanis remain in net buying of 0.99 million shares. While on the other hand Local Individuals, Mutual Funds and Brokers remain in net buying of 0.58, 4.54 and 6.34 million shares respectively but Local Companies and Banks remain in net selling of 6.34 million shares during last trading session.
HUBC, OGDC and JDWS remain in top three Index movers and they have tried to push KSE100 index in positive zone by 25.76, 15.33 and 7.66 points with net price change of 1.83 1.27 and 13.69 Rs/share respectively while on the other hand MBC, ENGRO and LUCK have dragged Index in negative zone by -31.91, -30.58 and -10.14 points with net price change of -3.83, -6.24 and -4.19 Rs/share respectively.

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. Weekly American Oil reserves dropped by 4.2 million barrels and in reflection to these figures Oil prices closed positive mode in international market during last trading session of 25th May 2016 WTI crude Oil closed at 49.61 $/bbl with net change of 0.42 $/bbl(0.85%) on NYMEX while Brent also closed at 49.76 with net change of 0.61 $/bbl(1.44%) on The ICE. In respect of oil prices some good volumes and movements are expected in oil sector 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 7, 122, 11 and 58 points or 0.11%, 0.69%, 0.53% and 0.57% respectively on DOD bases but KSE100 Index closed with net loss of 82.92 points on DOD bases.