On Wed, 4th Dec, 2013. The market now showed some sensible move. But it is still under immense pressure for any severe downfall, if not get managed properly. Although Fundamental indicators are in favors of market, which allow market to reach 26,000 level, but some technical and economic factors, which are the driver of market, turned to be saturated. It doesn’t necessarily mean that market need some huge corrections, but any injection of healthy investments would make these technical in the favor of market. A volume of above 260 million would be then focused.
Market, just after getting maximum level of +160 points, then touched low of -161 points and had later on closed at 24,445 (-143) points, with average volume of 200 million shares.
IMPORTANT NEWS and their IMPACTS ::::::
- Pakistan’s main stock exchange closed lower on Wednesday, with the benchmark 100 share index of the Karachi Stock Exchange falling 0.58 per cent, or 143.09 points, to 24,445.38. Some profit taking was seen at the bourse as a result of which the benchmark index closed at the level of 24,445, down 143 points. The rupee ended at 108.50/108.56 against the dollar, compared to Tuesday’s close of 108.57/108.63. (Economy – Neutral.)
- Chaudhry Abid Sher Ali, Minister of State for Water and Power said that the AJK-based Neelum Jhelum Hydropower Project is an important project for generation of low-cost electricity in the country. He said that the government wanted to start Diamer Basha Dam and Dasu Hydropower Project simultaneously and together with Bunji Hydropower Project, these projects would add a total of 15,000 MW of cheap and environment-friendly electricity to the national grid. (Economy, Power, Cement – Neutral, as work still needs time to complete, but good to make stock price rally.)
- Clouds of uncertainty still loom large on Pakistan’s Generalised System of Preferences (GSP) plus status prospects as France, Portugal and Poland are amongst the 12 countries who oppose trade concessions to Pakistan, well informed sources told Business Recorder. The sources said European Parliament is meeting on December 11, 2013 to decide whether any trade concessions seeking country can be singled-out /preferred. The committee maintains that one country cannot be singled out from the package. Voting on GSP plus is expected to be held on December 15-16, 2013. (Economy, Textile – Neutal, still wait for the voting of European members on GSP plus status.)
- Leading mills and spinners were on the sidelines on the cotton market on Tuesday following the better-than-expected phutti arrivals report by the Pakistan Cotton Ginners Association (PCGA), dealers said. The official spot rate remained unchanged at Rs 6,400. (Textile – Neutral.)
- Ministry of Petroleum & Natural Resources has withdrawn summary of suspending gas supply to textile mills in Punjab during peak winter season, said reliable industry sources. It may be noted that the Federal Minister for Petroleum & Natural Resources Shahid Khaqan Abbasi and Chief Minister Punjab had held a detailed meeting with textile industry leadership in Lahore. (Textile – Neutral, bit positive for some reasons.)
- The price of oil again rose more than 1 percent on Wednesday. Oil prices in Pakistan (PMEX), has been trading at $97.3 ($+1.18) per barrel till last update. (Crude Oil – Neutral)
FORECAST FOR TODAY and COMING WEEK:::::
TODAY, on 5th Dec. Market is now getting some air to breath, but it requires more oxygen to carry on breathing.
Market, after two days of slight profit taking, it would give some slighter chance to make it green today, but not on huge.
As per my analysis, market initially to get some slightly negative movement, but will get some support later on. The market is expected to be on mixed or negative trend and move between -79 points to +275 points.
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.)
No change in items for today.