PSX Daily Market Review 28 Nov. 2016

The Bench Mark KSE100 Index Opened at 42949.73, posted day high of 43066.84 and day low of 42907.07 while session suspended at 42999.66 points with net trading volume of 149.09 million shares. Daily trading volume of KSE100 Listed companies increased by 9.05 million shares or 6.47% on DOD bases.
Foreign Investors remain in net selling of 0.99 million shaers and net value of Foreign Inflow dropped by 2.02 million US Dollars. Categorically Foreign Individuals and Corporates remain in net selling of 0.22 and 2.63 million shares respectively but Overseas Pakistanis remain in net buying of 1.85 million shares. While on the other side Local Individuals and Brokers remain in net selling of 14.62 and 6.78 million shares but Local Comapanies, Banks and Mutual Funds remain in net buying of 2.18, 5.11 and 12.26 million shares respectively.
Foreign Investors remian in net selling at PSX platform during last week(third week of current month) and they have offloaded their positions by 20.56 million shares which was 7.91 million shares or 27.77% less then net selling of Foreigners during second week of current month, and net foreign Out flow from PSX was 36.97 million US Dollars which was 9.99 million US Dollars or 21.26% less then net out flow of second week of current month.

Asian stocks advanced on Friday as the Thanksgiving break in the United States helped slow a relentless surge in the dollar that has sucked capital out of most emerging markets. The respite for Asian assets may be short-lived, however, with U.S. Treasury yields resuming their climb after the holiday as investors bet that President-elect Trump will adopt policies that increase spending and debt, as well as spur higher growth and inflation. MSCI broadest index of Asia-Pacific shares outside Japan added 0.3 percent. It is poised to end the week 1.4 percent higher, its biggest weekly gain in two months.
The All Pakistan Textile Mills Association (APTMA) Punjab Chairman, Syed Ali Ahsan said reduction in price of system gas by Rs 200 per MMBTU for industry is a step in the right direction but would play havoc with the RLNG-reliant Punjab-based textile industry.
The Economic Co-ordination Committee of the Cabinet has waived Rs 50 billion to Sindh government on account of power sector receivables despite stiff resistance by the Ministry of Finance. A meeting of the ECC presided over by Finance Minister Ishaq Dar gave approval to the settlement reached between the Ministry of Water and Power and the government of Sindh to resolve the issue of outstanding bills of government of Sindh departments and Hesco/Sepco for the period of July 2010 to July 2016.
The weekly inflation for the week ended on November 24 for the combined income group witnessed decrease of 0.06 percent as compared to the previous week.According to data released by Pakistan Bureau of Statistics (PBS) here on Friday, the Sensitive Price Indicator (SPI) for the week under review in the above mentioned group was recorded at 220.57 points against 220.70 points recorded last week.As compared to the corresponding week of last year, the SPI for the combined group in the week under review increased by 0.80 percent.The weekly SPI has been computed with base 2007 2008=100, covering 17 urban centers and 53 essential items for all income groups and combined.
The State Bank of Pakistan (SBP) on Saturday kept the policy rate unchanged at 5.75 per cent for the next two months despite acknowledging an increase in inflation witnessed over the last several months. The interest rate has remained unchanged since the beginning of 2016-17, signalling stability in the economy.

The Bench Mark KSE100 Index is capped by a resistant trend line at 43698 on Daily Chart but its not becoming able to maintain its momentum as it have not become able to close above its previous high after penetrating that, which could be a caution call trigger on technical side. 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.