[Due to health issues, the update is being released late. Further, the blog will now update every Sunday as the required closing data is released on Sunday's]
KSE100 lost another -752.74 points or -1.70% on a weekly closing basis. Although last week's closing had been hopeful, honoring an important benchmark of 45500 +/- as support, the bears gained strength on prospects of another COVID wave and lockdown fears. The market seems to be resetting its cycle and our benchmark index chart has been updated to reflect new support and resistance zones.
The first major support is at 43800 +/- 300 and the second major support is at 42800 +/- 300 with bearish momentum still prevailing. The expectations are to make a double top at its previous high of 47000 +/-300 and then observe the potential for a further breakout.
Average weekly market capitalization fell by -215.71 billion/PKR. A steep fall indeed and once again establishes the 8000+ billion/PKR benchmark as a hardline resistance. This stubborn curse simply refuses to go away. Although the major momentum is gradually building, we do not foresee a significant breakout above this level in near future.
Events that may impact the equities markets are PIB auction on 13-Apr. MTB auctions on 7-Apr and 21-Apr. On the money market front, SBP made a fresh injection of significant amounts on the 1st and 2nd of April. The impact is yet to be observed. There are no reliable means to know the flow of these short-term injections, but it is speculated that much of these funds do find their way into the equities market. We shall observe the trend over a long period before deducing an opinion.
If you enjoyed reading this update, do let us know in the comments sections below.