On Wednesday, 20th Nov, 2013. The market showed some good volatile movement. Although not sustained, but broke 24,000 points new high, with having some intraday correction, just after getting maximum of +187 points, which later on closed at 23,800 (-19) points, with good healthy volume of 245 million shares.
IMPORTANT NEWS and their IMPACTS ::::::
- The book building process of Engro Fertilisers Limited (EFL), a fully owned subsidiary of Engro Corporation Limited, that kicked off on Tuesday was over-subscribed on the first day of the three day (Tuesday-Thursday) with the company receiving bids for 70.6 million shares, against the offer of 56.2 million shares. (IPO of Engro Fert.. gets good response)
- The Federal Board of Revenue (FBR) announced on Tuesday that income tax returns for the tax year 2013 will be accepted without wealth statement. An official announcement said that the wealth statement exemption will be available in the cases of individuals whose last declared or assessed income or the declared income for the year was less than Rs1 million.(Investors, KSE – Positive)
- The Enforcement Department of the Securities and Exchange Commission of Pakistan (SECP) in September and October initiated 56 show-cause proceedings. (Corporate-Compliances, Positive Impact for Share Holders, as some regulatory authority intervene.)
- Oil prices sank to a five-month low Tuesday on expectations of rising US supplies, and on the eve of talks between major powers and Iran over its nuclear programme. New York’s main contract, West Texas Intermediate for delivery in December, dived as low as $92.43 per barrel. It later stood at $92.91, down 12 cents from Monday’s close. (World Oil – Neutral.). Whereas Oil price gets some momentum in Pakistan (PMEX), and trading at $93.9/barrel till last update. (Pakistan Economy – as compare to World market, it creates bit pressure in term of price differentiation.)
- Millers and spinners indulged in forward buying as prices were matching with their psychological levels, dealers said on the cotton market on Tuesday. The official spot rate was down by Rs 50 to Rs 6,550,. (Economy, Textile – Positive)
FORECAST FOR TODAY and COMING WEEK:::::
TODAY, on 21th November, market, after volatile movement on last day, seems to get some short haul correction. The volumes in last few days, especially last day are extremely good, which is continuously witnessing confidence of the investors.
As per my analysis, market needs to get initially some slightly negative movement, but will get some support later on. The market is expected to move between -285 points to +79 points.
But there is also chance of some bullish trend, as the sentiments are still positive for INNOCENT investor.
BYCO, PPL, DOL, FFBL, FFC, LOTCHEM, AHCL, KESC (long term hold, at least till Feb 2014).
WTL, NIB, TSPL, KOIL (some rally expected in upcoming weeks.)
ALI M USMANI