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Monday, December 27, 2021

KSE 100 Week 50 & 51 Data & Technical Analysis

Technically speaking, 42800 +/- 300 is proving to be a firmly held bottom but overall bears refuse to surface. The major trend remains side ways, with some short term spikes expected. 

The last two weeks closed with positive weekly average capitalization which shows some promise of recovery ahead. Much depends on the next monetary policy. If bond yields began to stabilize, it could signal the end of a policy rate hike. Until then, we can only expect short-term spikes or sideways bourse. 


Sunday, December 12, 2021

KSE100 Week 49-2021 : Bears Gotta Stay!

Persistent failures to address economic woes and rapid erosion of political trust have rapidly receded the bourse with economic discourse once again leading to a rentier economy of high-interest rates. Only a miracle or surprise interest rate cut can save the bourse otherwise bears gotta stay! 

Monday, December 6, 2021

KSE100 Week 48-2021: Total Meltdown!

 The week started off with the COVID-19 Omicron variant washing global markets into deep red, causing the index to briefly hit its second major support at 42800 +/- 300. Given the force majeure situation, no technical or fundamental reaction is expected at the bourse. Looking forward, instability is expected to prevail until global stability begins to take shape. Further development at the bourse will depend on the next policy rate announcement. 

Another cause of major concern is the steep hike in Pakistan's bond yields. There has been a sharp almost-vertical hike causing major concerns on a further hike of interest rate. Which may prove devastating for the stock market. Average weekly capitalization once again fell in the red, wiping out any gains hoped at the start of the week.  Events that may impact the bourse are Ijara Sukuk auction on 9-Dec.