Threat for US sanctions concerning delay of VAT in Pakistan will hurt the investor’s sentiments; the United States also informed Pakistan that it will not be possible for the Obama administration to grant duty-free access to US markets of Pakistani goods because of the opposition from its textile sector.
On the other hand heavy government borrowing from the State Bank and large supply of money caused real inflation. The government’s borrowing for budgetary support surpassed the last year’s figure despite pressure from the IMF to reduce borrowing.
MSCI Index will not include KSE Index in the review list for potential reclassification to Emerging Markets as part of the 2011 Annual Market Classification Review
Future Outlook:
Local investors completely disregarded the foreign buying, shrinking volumes with limited movement of index threatening traders for breaking the lower range of the current channel.
That’s true index striving hard to sustain, but new developments from US regarding the disbursement of financial assistance can slide the market.
9,700 level wasn’t able to attract the investors because of low volumes, market can gain some momentum by trading over 9,761 and closing over this level will bring some confidence and strength to bulls.
We still recommend Buy around 9,657 – 9,643 with strict stop loss of 9,600. Remember exit is trailing up in current scenario.
The current behavior of the market heading towards the breakout, and direction is not yet decided. So under the prevailing situation our stance will be the same as given earlier “do not hold too many positions” follow accurately the precise levels of the market and the scrips. Do not forget placing your stop losses – stay out of excitement, remember! Market is not going anywhere; you will always get opportunity to avail, if capital is not dried. Market is offering good possibilities to intraday traders.
It is recommended to place limits for your target buying, intraday traders may not get chance of multiple entries.
We caution you to stay calm and focus on your target price for Long or Short.
That’s why we recommend TRADING ON LEVELS
Key Levels
9,867
9,817
9,761
9,739
9,704 – 9,683
9,657 – 9,643
9,609
9,572 – 9,561
9,514
9,472
Source: NCCPL
Foreign Investors Activities
23rd June, 2010
Net Buy USD $ 5,389,942
Disclaimer: This commentary, news or key levels are not a recommendation to buy or sell, but rather a guideline to interpret the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. We accept no liability whatsoever for any loss arising from any use of these levels. However the author DOES NOT GUARANTEES the accuracy of information provided on this report and is NOT RESPONSIBLE FOR ANY ERRORS AND/OR OMISSIONS.
