KSE 100 Week 23-2021: Post Budget Expectations?

Bourse remained unstable throughout as per our expectations and weekly closing failed to break the pivotal resistance at 48200 +/ 100. Therefore, the index is actually sitting on the edge with no clear decision. This could signal a lazy start of the week ahead followed by recovery. The strategy is to take advantage of the dip and keep a special focus on mid to small-cap stocks for the trading session between mid-June to mid-July. Support and resistance are marked on the chart below. 

Weekly capitalization of KSE-100 hangs in balance with stubborn resistance at 8300+ Bn/PKR once again and this remains the fear spot. On the fundamental side, measures to boost capital markets with tax reduction in the budget FY 21-22 are a positive catalyst and we look forward to observing the impact. The budget appears positive for rolled steel, cement, small auto, EV, and power generation. 

Events that may influence the bourse during the week ahead is the MTB auction on 16-Jun. 

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