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Sunday, October 24, 2021

KSE100 Week 42-2021 : Weekly Closing Notes


Bears are finally receding to hibernation but still have the potential of dips for soft correction. Major support and resistance levels are marked on the chart below. There is not much to speculate but global concerns of inflation may exert a negative influence on the mood as increased inflation may call in for internet rate hike. Strategy for the week ahead, wait and watch. 

After persistent losses, another weekly gain in average capitalization is observed. We expect the momentum to continue in the future. Events that may influence the bourse are the PIB auction on 27-Oct. 

Monday, October 18, 2021

KSE100 Week 41-2021: Closing Notes

 A new bottom discovery has been observed and the performance over the next week will determine if it is to hold or not. Weekly average market capitalization once again closed with a whopping loss but the last two days of trading have shown a hopeful recovery. Looking forward, the week ahead holds a lot of weight to determine the market future. But something can be said with confidence, the bulls had a beating of their lifetime. But now the bears are tired and may go into their winter hibernation. 

Events that may affect the bourse is MTB auction on 20-Oct.

Sunday, October 10, 2021

KSE 100 - Week 40-2021 : Weekly Roundup & Uncertanity!

 Uncertainty remained at the bourse and there is nothing much to update. Weekly capitalization closed again after several weeks of hefty losses. With only twelve weeks to go for annual closing, the market has shown no signs of respite since July. On the fundamental front, the situation is likely to remain unpredictable as long as chaos persists in Afghanistan. Cental bank announcement to curb USD outflow should provide some support to PKR. If PKR devaluation is curtailed then we may see the outflow reverse and recovery possible in PSX. Overall, PSX has become an unattractive investment under the current government despite making tax reforms and reducing CGT, the bourse has failed to sustain above its benchmark of 8000+ Bn/PKR. There are no money market events (MTB, PIB & Sukuk auctions) that may impact the market in the week ahead, 

Sunday, October 3, 2021

KSE100 Week 39-2021: The Pandora Leaks Open!

 Another week-long of pathetic performance but with a hope of support at 43800 +/- 300. The destiny looks to be a weak double top. Market in the coming week will be driven by the reaction of Pandora Leaks therefore not much can be speculation. Looking forward, the action plan is to sell on strength and exit for good. As the political and economic front looks turbulent for the country and bond yields are showing a gradual rise. 

The week closed with massive capitalization loss once again with the average dropping below the benchmark of 8000+ Bn/PKR. This is a third failed attempt to cross this hard-line which demonstrates a serious limit to inflows into the market. Happy trading and do let us know your feedback in the comment section below.