PSX Daily Market Review 29 Nov. 2016

The Bench Mark KSE100 Index Opened at 42999.66, posted day high of 43184.92 and day low of 42999.66 during last trading session. The session suspended at 43060.71 with net change of 38.46% and net trading volume of 91.75 million shares. Daily trading volume of KSE100 list companies dropped by 57.33 millinon shares or 38.46% on DOD bases.
Net value of Foreign Inflow dropped by 1.62 million US Dollars. Categorically, Foreign Individuals and Corporates remained in net selling position of 1.09 and 1.04 million shares respectively but Overseas Pakistanis remained in net buying position of 2.12 million shares. While on the other side, Local Individuals, Companies, Banks and Brokers remained in net selling position of 2.53, 5.65, 1.19 and 0.38 million shares respectively but Mutual Funds remained in net buying position of 9.21 million shares.

The U.S. dollar took a breather on Tuesday as global bonds steadied from their recent rout, while equities flatlined as political risk resurfaced in Europe ahead of a referendum in Italy this weekend. Oil prices remained jittery in the countdown to OPEC meeting on Wednesday but industrial commodities continued to benefit mightily from Chinese demand, both real and speculative. The action in Asian stocks was guarded with Australia up 0.1 percent and Japanese Nikkei .N225 off 0.2 percent.
K-Electric on Monday said it has converted more than 104 loss-incurring pole-mounted transformers (PMTs) on Aerial Bundled Cables (ABC) during last week. The KE officials said as many as 800 PMTs have so far been converted on ABC since the power utility had begun Ujala project earlier this year. They said the power utility drive aimed at Kunda-removal also continued. In Korangi, its team has pulled down and confiscated some 3,700kg of illegal wires and kundas (1,800 illegal connections) during the campaign.
Pakistani national flag carrier Pakistan International Airline (PIA) raised $130 million in fresh financing from a banking consortium, as the airline staggers under the weight of earlier loans totalling more than $3 billion, said a statement released by PIA on Monday. Financing facility was arranged by United Bank Limited (UBL) of Pakistan, and Credit Suisse Singapore as lead bankers, in addition to the state-run National Bank of Pakistan (NBP). The financing facility will be utilised by PIA for its general working capital requirements and in improvement in passenger services.
Textile associations on Monday announced that December 6 will be observed as black day against the gas price disparity that has been affecting the entire industrial chain in Punjab. The announcement came at a joint press conference of office-bearers representing Pakistan Textile Exporters Association (PTEA), Faisalabad Chamber of Commerce and Industry (FCCI), All Pakistan Textile Mills Association (APTMA), All Pakistan Textile Processing Mills Association (APTPMA), Pakistan Hosiery Manufacturers and Exporters Association, All Pakistan Bedsheet and Upholstery Manufacturers Association, All Pakistan Textile Sizing Industries Association, All Pakistan Cotton Power Looms Association (APCPLA) and Council of Loom Owners. The representatives said industries in Sindh are using low priced gas for their needs whereas Punjab-based industries are compelled to use costly Regasified Liquefied Natural Gas (RLNG) for their production process.
The dollar crushed the local currency on Monday as its price crossed Rs108 in the open market, shifting up to 70 per cent of the remittances business to the hawala system that offered Rs109 per dollar, currency dealers said. Despite several meetings with currency dealers in the recent past, the central bank has yet to come up with a plan to stop the rupee from sinking further against the greenback.
SMBL and MUGHAL along with Fertilizer Sector and Textile Sector may lead the market during trading session.

The Bench Mark KSE100 Index has not been able to penetrate its previous session high during last trading sesssion and now a new resistant trend line has been generated to cap it around 43251 points while its already capped by a strong resistant trend line at 43836 on Daily Chart but its not being able to maintain its momentum as it has not been able to close above its previous high after penetrating that since last two weeks. KSE100 has penetrated 43097 points region many times but still has not been able to close above that region which could be a caution call trigger on technical side. The daily Stochastic has generated crossovers for a short term bearish momentum which can push index towards 42627 points region if it would not be able to close above 43097. For current trading session, swing trading strategy with trailing stop loss could be beneficial.