Mkt, Volatility to persist with former president Musharraf’s trial case & audit of state owned companies seems to be major concern. Cements & textiles are expected to outperform due to lower coal prices/some inventory gains on cotton with strong full year results. Talks of energy policy announcement at the weekend, major chunk of circular debt resolution can lead to positive momentum in OMC’s and IPP’s, especially PSO. KSE to trade 20970 to 21400 range for today. FSL CHART ANALYSIS: Supports Hold, Follow Through to be Judged: Support at 20900 holds keeping the 55-day average protected. But initial signs of any recovery set in on ability to gain past the 21-day average and move above Monday’s bar (21800). Marginal intra-day gains should be treated with caution while penetrating below 20900 would unfold further corrections towards 20000. Current buy strategies would be defined with risk below 20900. MARKET MOVERS: - CIRCULAR DEBT, Govt has taken a bold initiative to settle circular debt & is taking steps to ensure that it does not recur in future. - BANKS,NPLs of banking industry rose by Pkr1.4bn to Pkr630bn by the end 1QCY13 due to slow economic activities. - GAS, Govt plans to conduct an audit of 2 most influential sectors – fertz & textiles using captive power plants to save gas to & overcome the energy crisis. - POWER, Govt increased allocations to Ministry Power by 25% to Pkr56.4bn FY14. - FATIMA PA, Company is set up 118.8MW co-generation power plant in Muzaffargarh at an estimated cost of $234.7mn. - BAFL PA/WARID, Warid Telecom has been put up for sale by its Abu Dhabi owners & is likely to draw interest from China Mobile and Etisalat. REGION OUTLOOK: * Stronger US data across the board, including a new 5 year high for consumer confidence and a 12.1% increase in house prices YoY helped US yields punch up 7bp to 2.61% on the night. * TONIGHT: US Q1 GDP & US Q1 Core PCE Foreign Flow: Gross Buy USD7.35mn - Gross Sell USD7.81mn - Net SELL USD0.47mn
Posted on: Wed, 26 Jun 2013 04:58:58 +0000
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