KSE-100 reverses bearish trend
After receding for two successive days, the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) reversed its trend on Friday and edged up about 80 points in topsy-turvy trading. The KSE-100 index opened up and continued to rise during the day as market participants remained optimistic. However, selling pressure emerged in the second half of trading, which wiped off most of the gains. Nevertheless, the KSE-100 managed to close in the green with some gains. At close, the benchmark KSE-100 index recorded an increase of 84.91 points, or 0.18%, to settle at 46,227.65 points. Overall trading volumes surged to 694.8 million shares compared with Thursday’s tally of 577.95 million. The value of shares traded during the day was Rs24.9 billion. Shares of 415 companies were traded. At the end of the day, 205 stocks closed higher, 200 declined and 10 remained unchanged. Byco Petroleum was the volume leader with 89.8 million shares, gaining Rs0.9 to close at Rs10.30.
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CAC 40 Index is on track to €6,000 in the near term
The CAC 40 index is hovering at the highest level since February last year helped by Vivendi. The index ended the day at €5,786, meaning it has gained more than 60 percent from its lowest level last year. Vivendi was the best-performing index in the CAC 40 index yesterday after it soared by more than 20 percent. The stock rose after the company said that it would list its 60 percent stake in Universal Music Group (UMG) in Amsterdam. After the spin-off, the company will still own 5 percent of the company while Tencent will become the biggest investor. Societe Generale was another big winner in the CAC 40 after the giant bank reported strong earnings. The bank said that it had a net profit of more than €569 million in the fourth quarter. It also said that it would buy back its shares worth more than €570 million later this year. The daily chart shows that the CAC 40 index has made two main breakouts in the past few months. It made a major breakout at €5,213 on June 8 followed by another one at €5,722 in January this year. The price has also moved above the 25-day and 15-day moving averages. Also, the Relative Strength Index (RSI) has also continued to rise.
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DAX Index forms double top ahead of Allianz earnings
The DAX index is falling in the futures market as investors react to the rising yields in the United States. The index is trading at €13,950, which is slightly below this week’s high of €14,115. DAX news: The German DAX index is falling because of the rising yields in the US as investors wait for the next stimulus deal. As shown below, the 10-year, 5-year, and 2-year treasury yields have risen to the highest level since January. This is probably a sign that investors hope that the $1.9 trillion stimulus package will lead to higher inflation. With high inflation will come higher interest rates, which are often negative for stocks. The DAX index is also falling ahead of key corporate earnings from leading European companies. Some of the companies to watch will be Allianz, Hermes, Danone, and Renault. Turning to the four-hour chart, we see that the index found a strong resistance at €14,165 this week. It then dropped to a low of €13,853 and then pared the gains to the current €13,950. The index has also formed a double-top pattern whose neckline is at €13,825. Therefore, in my view, the index will resume the upward trend, move above €14,0000, and then break-out lower. Any sharp bearish moves will be confirmed if the index manages to move below the neckline at €13,825.
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Wall street indexes follow FTSE 100 rise
The S&P 500 technology and communication shares were among the smallest gainers in early trading, while blue-chip financials, industrials, energy and materials rose more than 1 percent. Microsoft, Facebook, and Netflix fell between 0.5 and 1 percent, sticking to a trend seen for most parts of the week. The Dow Jones Industrial Average was up 0.33 percent to 31,596, the S&P 500 was up 0.27 percent at 3,924.56, and the Nasdaq rose 0.47 percent to 13,931.15. Earlier, London’s FTSE 100 has turned positive despite PMI data showing February was another month of contraction and January retail sales data also highlighted the consequences of the latest national lockdown. The FTSE 100 has closed at 6,624.02, trading up 0.1 percent, while the domestic-focussed FTSE 250 index has closed at 21,035.96, up 0.49 percent.
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Sensex slips for 3rd day, drops 379 pts
Caution after one of the longest bull-runs since 2003 continued to weigh on investor sentiment on Thursday as market participants booked profits in cyclical outperformers. That apart, expiry of the weekly F&O contracts also added to the volatility. Among key indices, the benchmark S&P BSE Sensex tanked 379 points today to settle at 51,325 levels. From the day’s high of 51,904, the index skid over 700 points to hit a low of 51,187. At close, Bajaj Finance, Nestle, M&M, ICICI Bank, and HDFC, down up to 2.5 percent, ended the day as the top losers. On the upside, ONGC remained the outperformer, up 8 percent on the BSE, after the government announced Rs 7.5 trillion infrastructure plan in the oil and gas sector over the next 5 years. Besides, NTPC, Asian Paints, Power Grid, Tech M, and IndusInd Bank were the other top gainers. NSE’s Nifty50, on the other hand, slipped below the 15,150 levels to end at 15,119, down 90 points or 0.6 percent. The advance to decline ratio remained neck and neck with 27 stocks declining on the Nifty against 23 stocks that advanced.