Neutralizing above 10-DMA
The benchmark KSE edged 20.79 points lower yesterday to settle at 12317.15 level, creeping down for the third straight session. Volume stood at mere 32.99mn shares against 25.88mn shares traded a day earlier.
Despite yesterdays repel from 12399 to 12302, we continue to suspect that the minor consolidation (five-day) is nearing an end, considering the recent contraction in volume. All the ingredients for continuation of an intermediate uptrend remain intact after a recent break above the three-month resistance (12100~12125). Near-term focus is set at 12569~12650 area.
As for today, ability to hold on to 12302 (10-DMA) should allow a retest of 12401. Above there, eye 12451. However, a relapse under 12302 would threat much deeper adjustment to 12256 and 12195 points. Traders are suggested to capitalize at such weakness.
PSO (279.45): Buy in 277.03~276.26, focusing 285.99~288.97 area. Risk under 275.
NML (55.79): Cautious buy in 55.84~55.75. Footing above 56.18 would target 57.76~58.36 area. Risk under 55.50.
LUCK (70.89): Oversold on hourly filters. Buy at weakness to 70.65, targeting 71.93~72.10. Stop below 70.20
Preferred Stocks: PSO, POL, NBP, LUCK, AICL and PTC.
(AKD)
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Stock Market Opening and Closing Notes
Started by Amin Khan, Jun 15 2011 10:08 PM
Stock Market Opening Notes Closing Notes
628 replies to this topic
#8
Posted 16 June 2011 - 09:27 PM
KSE‐100: Consolidation pattern maintained
�� Although the index closed in the green, it registered a lower high and a lower low
while consolidating below its resistance trendline (red line). The resultant formation
suggests that the consolidation phase is likely to continue.
�� The Stochastic Oscillator continues to decline and is about to enter the oversold
region while the RSI has registered a marginal improvement.
�� However as a composite, quite a few of the index’s key drivers have either become
oversold or have generated buy signals in the oversold region. This increases the
possibility of a recovery.
�� Taking the above factors into consideration, we maintain a cautious buy on select
stocks.
Analysis and Overview:
The index opened on a positive note however after touching its day’s low, started on an
uptrend and closed in the green. Volumes declined by 16.11% and stood at 45.98mn.
Although the index closed positive, it registered a lower high and a lower low while
consolidating below its resistance trendline (red line). The resultant formation suggests
that the consolidation phase is likely to continue.
The Stochastic Oscillator continues to decline and is about to enter the oversold region
while the RSI has registered a marginal improvement. However as a composite, quite a
few of the index’s key drivers have either become oversold or have generated buy
signals in the oversold region. This increases the possibility of a recovery.
Taking the above factors into consideration, we maintain a cautious buy on select stocks.
The first support is at 12,296 points and the second support is at 12,219 points. The first
resistance is at 12,430 points and the second resistance is at 12,488 points.
KASB
�� Although the index closed in the green, it registered a lower high and a lower low
while consolidating below its resistance trendline (red line). The resultant formation
suggests that the consolidation phase is likely to continue.
�� The Stochastic Oscillator continues to decline and is about to enter the oversold
region while the RSI has registered a marginal improvement.
�� However as a composite, quite a few of the index’s key drivers have either become
oversold or have generated buy signals in the oversold region. This increases the
possibility of a recovery.
�� Taking the above factors into consideration, we maintain a cautious buy on select
stocks.
Analysis and Overview:
The index opened on a positive note however after touching its day’s low, started on an
uptrend and closed in the green. Volumes declined by 16.11% and stood at 45.98mn.
Although the index closed positive, it registered a lower high and a lower low while
consolidating below its resistance trendline (red line). The resultant formation suggests
that the consolidation phase is likely to continue.
The Stochastic Oscillator continues to decline and is about to enter the oversold region
while the RSI has registered a marginal improvement. However as a composite, quite a
few of the index’s key drivers have either become oversold or have generated buy
signals in the oversold region. This increases the possibility of a recovery.
Taking the above factors into consideration, we maintain a cautious buy on select stocks.
The first support is at 12,296 points and the second support is at 12,219 points. The first
resistance is at 12,430 points and the second resistance is at 12,488 points.
KASB
Edited by Abdul Saboor, 16 June 2011 - 09:27 PM.
#9
Posted 16 June 2011 - 10:02 PM
KSE100Index 12,369|High 12,385|Low 12,296|Change +52|Value USD 26mn|Vol 26mn
Equities remained sluggish on low volumes with late buying to help the index edge up 51 points. PPL came under the lime light, after the company announced its emergent board meeting on June 21, 2011 to discuss early cash dividend. It's expected that cash dividend of 50 - 60% may be announced, pushing the stock to close up by +3.02%. Furthermore, FFC PA edged up higher after news floats that the company would increase its urea prices in line with recent hike in international prices.
We expect broader market to remain range bound on the last day of the week however we see a strong likelihood of market performing better in last week of June due to seasonal effect. We continue to recommend buy in MCB, POL, APL, FFC, NML and DGKC on dips.
(Elixir)
Equities remained sluggish on low volumes with late buying to help the index edge up 51 points. PPL came under the lime light, after the company announced its emergent board meeting on June 21, 2011 to discuss early cash dividend. It's expected that cash dividend of 50 - 60% may be announced, pushing the stock to close up by +3.02%. Furthermore, FFC PA edged up higher after news floats that the company would increase its urea prices in line with recent hike in international prices.
We expect broader market to remain range bound on the last day of the week however we see a strong likelihood of market performing better in last week of June due to seasonal effect. We continue to recommend buy in MCB, POL, APL, FFC, NML and DGKC on dips.
(Elixir)
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#10
Posted 16 June 2011 - 10:03 PM
stocks end up in thin trade; rupee eases vs dollar
Thursday, 16 June 2011 13:24
KARACHI: Pakistani stocks ended higher on Thursday but investors' interest remained low and volume thin, which dealers said was due to the continued implementation of capital gains tax (CGT) on certain investments.
The Karachi Stock Exchange's benchmark 100-share index ended 0.42 percent, or 51.97 points, higher at 12,369.12.
Turnover was only 45.98 million shares, down from 54.8 million a day earlier.
"There was very little interest in the market and most investors continued to remain on the sidelines, largely due to the CGT issue," said Khalid Iqbal Siddiqui, director at brokers Invest and Finance Securities.
The government confounded market expectations by not removing capital gains tax on certain investments in the 2011/12 budget, announced on June 3.
A 10 percent capital gains tax is imposed on stocks held for six months or less, and a 7.5 percent tax is levied on stocks held between 6 months to a year.
"The market picked up some pace in the second half after the announcement of a board meeting by Pakistan Petroleum Ltd (PPL)next month, where it is expected to announce cash dividend," said Siddiqui.
PPL , the fourth in the table of volume leaders, ended 3.04 percent higher at 217.98 rupees.
In the currency market, the rupee eased to 85.84/89 to the dollar, from 85.80/85 the previous day, amid steady dollar demand from importers.
The rupee hit a record low of 86.50 last month, but dealers said the local unit is expected to stay largely stable in the coming days because of increased remittances from Pakistanis working abroad.
According to official data, remittances sent by overseas Pakistanis crossed $10 billion for the first time, hitting $10.1 billion in the first 11 months of the 2010/11 fiscal year, an increase of 25.20 percent compared with the same period last year.
In the money market, overnight rates rose to 13.90 percent from 11.0 percent a day earlier, following net outflows of more than 55 billion rupees ($640 million) from the market, dealers said.
Thursday, 16 June 2011 13:24
KARACHI: Pakistani stocks ended higher on Thursday but investors' interest remained low and volume thin, which dealers said was due to the continued implementation of capital gains tax (CGT) on certain investments.
The Karachi Stock Exchange's benchmark 100-share index ended 0.42 percent, or 51.97 points, higher at 12,369.12.
Turnover was only 45.98 million shares, down from 54.8 million a day earlier.
"There was very little interest in the market and most investors continued to remain on the sidelines, largely due to the CGT issue," said Khalid Iqbal Siddiqui, director at brokers Invest and Finance Securities.
The government confounded market expectations by not removing capital gains tax on certain investments in the 2011/12 budget, announced on June 3.
A 10 percent capital gains tax is imposed on stocks held for six months or less, and a 7.5 percent tax is levied on stocks held between 6 months to a year.
"The market picked up some pace in the second half after the announcement of a board meeting by Pakistan Petroleum Ltd (PPL)next month, where it is expected to announce cash dividend," said Siddiqui.
PPL , the fourth in the table of volume leaders, ended 3.04 percent higher at 217.98 rupees.
In the currency market, the rupee eased to 85.84/89 to the dollar, from 85.80/85 the previous day, amid steady dollar demand from importers.
The rupee hit a record low of 86.50 last month, but dealers said the local unit is expected to stay largely stable in the coming days because of increased remittances from Pakistanis working abroad.
According to official data, remittances sent by overseas Pakistanis crossed $10 billion for the first time, hitting $10.1 billion in the first 11 months of the 2010/11 fiscal year, an increase of 25.20 percent compared with the same period last year.
In the money market, overnight rates rose to 13.90 percent from 11.0 percent a day earlier, following net outflows of more than 55 billion rupees ($640 million) from the market, dealers said.
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#12
Posted 17 June 2011 - 11:15 AM
Minor Consolidation Nearing an End: Stay Long
The benchmark KSE recovered 0.42 percent yesterday, with turnover of mere 26.52mn shares against 32.99mn shares exchanged a day earlier.
By way of a small hammer formation the market managed to sustain itself above the support around 12302. We continue to suspect that the minor consolidation (six-day) is nearing an end, considering the recent contraction in volume. All the ingredients for continuation of an intermediate uptrend remain intact after a recent break above the three-month resistance (12100~12125). Near-term focus is set at 12569~12650 area.
As for today, recovery through 12401~12409 would eye 12451~12474, with support placed in 12338~12317.
Preferred Stocks: PSO, POL, PPL, NBP, LUCK, AICL and PTC.
(AKD)
The benchmark KSE recovered 0.42 percent yesterday, with turnover of mere 26.52mn shares against 32.99mn shares exchanged a day earlier.
By way of a small hammer formation the market managed to sustain itself above the support around 12302. We continue to suspect that the minor consolidation (six-day) is nearing an end, considering the recent contraction in volume. All the ingredients for continuation of an intermediate uptrend remain intact after a recent break above the three-month resistance (12100~12125). Near-term focus is set at 12569~12650 area.
As for today, recovery through 12401~12409 would eye 12451~12474, with support placed in 12338~12317.
Preferred Stocks: PSO, POL, PPL, NBP, LUCK, AICL and PTC.
(AKD)
Click Here For: "Daily Reports From Different Brokerage Houses"
