KSE-100 index witnesses corrective spell with drop of 286 points

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Amanullah Khan

Karachi—KSE-100 Index continued to experience corrective spell with a drop of 286 points to close in red at 32671 levels here on Thursday. Although the corporate results as well as international oil prices were encouraging yet political noise on the back of mud slinging by different factions of a political party in Karachi however had an impact on trading environment in general. According to market analysts, the index could give a corrective move from current levels till 31,950, which is the resistance of the previous bearish channel.
Moreover, RSI in the daily chart is also near the overbought region and signaling a correction from current levels. Meanwhile, international oil prices rose to a 2016 high of US$38.43/bbl on Wednesday as inventory data showed a sizable gasoline drawdown. Prices have dipped slightly on Thursday but have largely held on to gains despite analysts suggesting that the rally could lose steam. Supporting the analysts claim was a report from Barclays who said that no production cut was discussed during a recent trip to Saudi Arabia. Oil prices rose to a 2016 high of US$38.43/bbl on Wednesday as inventory data showed a sizable gasoline drawdown.
Prices have dipped slightly on Thursday but have largely held on to gains despite analysts suggesting that the rally could lose steam. Supporting the analysts claim was a report from Barclays who said that no production cut was discussed during a recent trip to Saudi Arabia. The overall market volume also dropped from 200 million plus to 135 million shares indicating attitude of the investors to sit on the fence waiting for the right time for investment. Dewan Cement was however the volume leader of the day with a trade of 14 million to their credit, while TRG Pakistan and PTCL were second and third volume leaders with respective trade of 7.59 million and 7.17 million shares to their credit.

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