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Saturday, August 17, 2019

Update Saturday, August 17, 2019



By: Stock Master
1.  KSE100: Weak session observed today being the lone and last trading day of the week. Actual market situation will clear on Monday when major players come online. We expect market to rest at support of 28500, failing which we may observe a free fall to 26000 in next few weeks.  Pak-India tensions at border are unexpected fuel to bearish sentiments which demand extra cautious risk management.
2.  HBL: Entire banking index is under pressure after news breakout about SBP penalizing four banks on AML/KYC deficiencies. As such, our initial expectation of PKR 110 was hit successfully but support failed to hold due to negative news break out. HBL shows good recovery today after hitting a low of 102.50 and then bouncing back as high as 107. We expect possible lowest support as PKR 100 and at extremely low RSI, do not advice to short sell. However, those in long position should hedge their risk accordingly just in case the index faces free fall.
3.  ISL: lowering of US interest rate made a positive impact on metal sector. As mentioned earlier, we warned against short selling and continue to iterate for same.

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