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Thursday, March 19, 2020
Week 12-2020 Mid Update: In solidarity with Corona victims
As per the previous update ( link here ), it was warned that the Corona virus infected market has no bottom and do not treat an intraday pullback as a signal for buying. Rather, the market is expected to re-test its lowest support on closing basis. And Lo Behold! the market did turn both prediction true - not only did the index came down on a closing basis to its lowest support once again but it also broke its lowest support to make a new lower low close.
DoD basis, the market is undergoing its worst capitalization loss of CY2020 with each day record being worst than the previous one. Global panic wave is driving the selling pressure. Market capitalization has hit an all-time low of CY2020 never seen before.
Looking forward, we expect 28600 +/- 100 to be the last support stand of the market, breaking which is going to be an unpredictable downfall leading to the discovery of new bottom. Marginal interest rate cuts have proven to have no impact on the market.
SECP has stepped in with relaxed margin requirements (link here) and an uptick rule on short selling (link here) to help with market stability. The effect of which will be known in next trading session.
Our special prayers go out for the victims of COVID-19 and may the soul of departed rest in peace. 😭😭.
We wish the trading activity may soon return to normal at Pakistan Stock Exchange.
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