Following up from our previous update, index perfectly honoured our prediction. Staying within the pivot zone during the correction, honouring the lower band of pivot range and then bulls got charging at full speed taking the index towards crossing the 41900 +/- 200 benchmark, gaining +967 points (+2.4%) WoW to close at 42,023 points. While the last trading the week saw some correction - expected as it happens after crossing any critical resistance followed by a choppy second session due to panic trigger of rain starting again. Memories of recent urban flooding are still fresh to cause this kind of behaviour trigger - nothing unusual.
Looking forward, we may see a weak start on Monday, 7th Sep followed by a recovery in a later day. 41900 +/- 200 shall act as strong support while upside target remains the pre-COVID19 level of 43000 +/- 300 initially. We always keep the worst possible scenario in mind under all situations.
PM Imran Khan visit to Karachi and announcement of Karachi transformation plan may act as a positive trigger (PM Imran unveils Rs1,100bn development plan for Karachi)
Major financial events in the week ahead with possible impact on the stock market is MTB auction on 9th-Sep.
Market capitalization remained strong throughout the week, with the weekly average closing at a gain of +248.53 billion/PKR. The highest reported in the last four week and signals s strong start of September month. Money flow into the market will further improve as Roshan Digital banks account take off with investment flowing in from abroad.