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Sunday, July 26, 2020
KSE100: Week 30-2020 - Bears Make Some Hunter Beef!
KSE100 index took a dive after hitting its predicted critical resistance of 38300 +/- 300 and strong support stands at 36900 +/- 300. Major events across the week had been Ijara Sukuk auction on 23-Jul, PIB auction on 21-Jul, and MTB auction on 29-Jul. Together they represent a major liquidity drain from the equities market. Eid Al-Adha 2020 falling at the end of week 31-2020 represents another major cause of profit booking. So overall, we expect the index to continue its correction and may find stability near the end of week 31-2020 as dips are exploited by sharp investors as an opportunity to accumulate. Rollover week ahead will also add to index volatility which can lead to see-saw behavior intraday. So looking forward we do not have much to say about the index so we wish you a very happy Eid Al-Adha 2020!
Market capitalization remained strong for the entire week, keep itself afloat above the previous week's average. Despite profit-taking losses, the weekly average closed with a gain of +130.67 billion/PKR. Strong confidence in the market and a demonstration that dips were bought by investors waiting on sidelines for an opportunity.
In a rather unorthodox update, today is not about stocks but market capitalization data is updated below. I have taken a break to emotiona...
Technically speaking, 42800 +/- 300 is proving to be a firmly held bottom but overall bears refuse to surface. The major trend remains side ...