On Thursday, 28th Nov, 2013. The market showed bullish trend, day after appointment of new Chief of Army Staff. Yesterday, market crossed, sustained, and closed above 24,000 points, which strengthen the new benchmark.
Market, just after getting maximum level of +421 points, had later on closed at 24,180 (+412) points, with average volume of 153 million shares.
IMPORTANT NEWS and their IMPACTS ::::::
- Prime Minister Nawaz Sharif resorted to announcing incentive packages for the business community and tax payers on Thursday afternoon.
- During his address to businessmen and traders in Islamabad, he said that the government would forego the requisite requirement of asking for the source of investment, if they are made in the government’s green field projects or expansion projects in certain sectors after January 2014.
- Nawaz also announced plans to reward those people who have been diligently filing their taxes.
- The premier said that in order to encourage tax payers a ‘Privileged Tax Payers Cards’ would be issued to 400 top tax payers in different categories including chief executive officers, association of persons, salaried and non-salaried class tax payers.
- The card will grant a holder access to VIP lounges at airports, fast track immigration‚ passports would be issued gratis and their existing baggage allowance would be increased from $500 to $5,000 from March next year.
- Company, who pay 25% more tax then last year, shall get an exemption from “complete audit”
- Government also extends dates of filing Tax-Return till 15th Dec, 2013. (Economy, Investors, KSE – Positive, as good move from government, after its bulk of policies to fail the Investment in country.)
- Country’s leading mills particularly Nishat Chunia Textile Mill indulged in panic buying, apparently, because of dollar’s further gain versus the rupee, dealers said on the cotton market on Wednesday. The official spot rate was unchanged at Rs 6,350per maund (37kg), (Textile – Positive)
- The World Bank and United Nations on Wednesday appealed for billions of dollars to provide electricity for the poorest nations but said there would be no investment in nuclear power. “We don’t do nuclear energy,” said World Bank president Jim Yong Kim and UN leader Ban Ki-moon (Economy – Neutral.)
- After getting agreed on nuclear issue in Sunday meeting, Iran and the United States are to establish a joint chamber of commerce within a month, with direct flights also planned, an Iranian official said Wednesday in a newspaper report. “Iran-US chamber of commerce will be launched in less than one month,” Abolfazl Hejazi, a member of Iran’s Chamber of Commerce, Industries, Mines and Agriculture (World Economy, Oil – Positive sign, as Oil price expected to get some further bearish trend, after Iran get allowed to export it easily to world, but for maintaining the price level till 6 months by Iran, oil price might not get much effected.)
- The rupee could not get rid of further erosion in its value against the dollar on the money market on Wednesday due to strong demand for the US currency, dealers said. OPEN MARKET RATES: The rupee dropped by 20-paisa versus the dollar for buying and selling at Rs 109.50 and Rs 109.70 (Economy, Oil Refineries – Negative, but if we look at the payment made IMF of $395m yesterday, it looks some Neutral impact )
- Oil prices still under pressure in Asia, as US-IRAN meeting headed toward bilateral support. In Pakistan (PMEX), it has been trading at $92.10 (-0.14) per barrel till last update. (Crude Oil – Neutral for Drillers, and Refineries, Rupee also get depreciated)
- Meezan Bank has entered into an agreement with Ethical Finance Limited (EFL) to share its expertise in the areas of Islamic banking product development, Shariah controls, and training and other Shariah-related technical services and support. (Company News, Meezan Bank enters into an agreement for selling its shares.)
FORECAST FOR TODAY and COMING WEEK:::::
TODAY, on 29th November. Market still has lot of opportunities to gain, with some good initiatives taken by Government of Pakistan (GoP), along with it has been trading at (P/E = 8.5x).
After impressive movement in term of index gain, and some average movement in term of volume, market looked to wait for some news, and their wait was over, when GoP announced incentive packages to Investors and Traders. So the market except routine or technical correction, and have nothing to lose, this would strength the chance of third tier shares expected to move in coming 15 day.
As per my analysis, market deemed to get initially some slightly negative movement, but will get some good support later on. The market is expected to be on bullish trend and move between -85 points to +316 points.
But today is also a future settlement, so market might not reflect some positivity, as the day end, but all in all, good weeks are coming after few corrections.
BYCO, NCL, PPL, DOL, FFBL, FFC, LOTCHEM, AHCL, KESC etc. (long term hold, at least till Feb 2014).
DFSM, NIB, KOIL, JPGL, etc (some rally expected in upcoming weeks. These all are solely my predictions, so consider your dealers too.)