KSE100 met our benchmark of sustaining a weekly close above the critical level of 43300 +/- 300, breaking out of the pre-COVID19 high. The rally has been a significant accomplishment and honoring 43000 +/-300 as support opens the gateway to 44700-45500 +/-300. Weekly closing observed a net gain of +1270 points or +2.99%. We may expect a soft correction ahead, as it happens after surpassing any critical resistance and any upside is conditional to honoring previous resistance as support while a dip is a buying opportunity. One must be ready for a move on both sides to avoid getting caught by surprise. We can expect the bears to remain in hibernation during the winter (hint: late Feb to mid-March) but a hungry one can be found roaming around occasionally. Bear hunters take the trophy home!
Market capitalization surpassed the critical level exceeding the 8000+ billion/PKR benchmark on a DoD basis, while the weekly average demonstrated a net gain of +221.14 billion/PKR. We advise a word of caution here as this has typically been an exhaustion point of money flow. On a positive note, a break from here will see a new all-time high. This is literally the make or break point as we have referred to in so many previous updates.
Events that may impact the equities market are MTB auction on 30-Dec.