Daily Briefing: Expect market to remain choppy as local investors continue to sell and FIs accumulate ahead of the budget announcement. According to the National Clearing Co. of Pak net foreign inflow on Jun02 was recorded at US$ 10.72mn. Banks & DFIs net sell was US$ 0.06mn while mutual fund net inflow clocked in at US$ 2.34mn (+) As per the economic survey GDP growth in FY14 clocked in at 4.1% highest in the past 6 years (+) Govt. has decided to withdraw 10% Federal Excise Duty on locally assembled vehicles exceeding 1800cc (+) According to the Pak Bureau of Statistics CPI during May14 clocked in at 8.34% vs. 9.18% in Apr14 (+) According to the economic survey manufacturing sector growth during Jul-Feb was recorded at 5.5% compared to 4.5% growth during the same period last year (+) Govt. is expected to convert PKR 400/MT tax on cement to 5% ad valorem on retail price basis. Cement sector expected to pass on the impact making it a neutral impact on the sector (+) Technical View: Yesterdays diminutive candle hints neutralization of excessive demand at resistance around 29,884 level. Expect Immediate weakness through 29,574 level producing pressure towards 29,442 - 29,274 levels. On the upside, a break above 29,933 level is required to refresh the bullish momentum towards 30,321 level. Lock trading profits at strength up to 29,884 levels, targeting 29,442 - 29,274 levels / Buy on break above 29,933 level with risk below 29,780 level. 13-day Leaders: MARI, MUREB, KEL, SHEL, INDU, PSEL, RMPL, THALL, HUMNL & ABOT. 13-day Laggards: SHEZ, JVDC, BOP, JDWS, EFOODS, TPL, FATIMA, HUBC, JSCL & NRL.
Posted on: Tue, 03 Jun 2014 04:40:16 +0000
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