https://soundcloud.com/zafar-stocks/psx-pakistan-stock-exchange-market-behavior-1st-march-2016-with-future-prediction-zafar-securities
Tuesday 1 March 2016
Zafar Stocks PSX 100 Index (Zafar Securities - PSX Pakistan Stock Exchange Broker)
ZSL,Market Recap Mar-01-2016
Despite a choppy start, the 100 index gained momentum during the course of the day to gain 139.60 points (0.44%) closing at 31,509.11.Overall market participation slumped to 94mn shares compared to 130mn shares yesterday - another day of dismal volumes and the market rallied.
E&P sector came into limelight with POL and MARI hitting upper circuits on the back of some recovery in crude oil prices on reports of falling U.S. and OPEC production and strong oil demand although slump in China's manufacturing sector could weigh down on crude oil prices going forward. When analyzing today's move it is pertinent to note that OGDC, POL, PPL and MARI contributed gains to the 100 index compared to FFBL, BAFL and HUBC which contributed decline to the 100 index. BAFL definitely spoiled the party with announcement of below expected NPAT of PkR7.96bn in CY15 and halving its full year dividend to PkR1/share.
Technically speaking, looking at crude oil price, it closed above a significant trend line resistance on daily charts although the same has yet to materialize on weekly charts as well. Future for the price of oil is like a jigsaw puzzle, we would take any speculative recovery in crude oil prices with a grain of salt at this point in time.
Mohammad Naeem Akhtar, Market Analyst .
Zafar Securities Private Limited.
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