Bullish sentiments prevailed as on Friday 17th July, 2020, as KSE 100 index accumulated 329.41 points or 0.89 percent to close at 37,330.85. However stock markets around the world mostly closed in red. Total volume of the index was 302.936 million, with 236 shares ending green while 94 were in red. This clearly showed that market was in hands of bulls.

Looking at the economic conditions, a positive vibe helped in gaining investor’s confidence as country’s total liquid foreign exchange reserves climbed up by 0.86 percent to USD 18.95 million as per latest report of the State Bank of Pakistan on July 10th, 2020.

Main sectors that contributed to index were Banking, Fertilizer and Power Generation & Distribution sector.

The top volume leaders were HASCOL gaining 1.59 percent to close at Rs. 14.08 with traded volume of 87.258 million shares. The respective volume of HASCOL was the highest in its trading history as the company reported Loss per Share of Rs. 129.49 for the 12 months ending December, 2019. The 2nd runner up was LOTCHEM which jumped up 6.83 percent to close at Rs. 12.20 with volume of 24.85 million shares for the day. Unity surged 5.96 percent to close at Rs. 12.62 with volume of 22.47 million shares. MLCF climbed 1.54 percent to close Rs. 32.37 with volume of 16.12 million shares while TRG increased 1.88 percent to Rs. 37.42 with volume of 15.419 million shares.

KSE 100 Index graph

KSE 100 Index analysis

If we look at the above KSE 100 index chart, it seems that the market is overbought as per relative strength index of 79. However a similar movement and trend can be seen in last one year. On November 11th, 2019, KSE 100 Index was on level of 36,765 with RSI value of 79 and it substantially gained above the level of 43,000. Keeping in view the same historical trend it seems clear the market will gain till levels of 43,000 and it will adjust its RSI value. In short term correction could be seen at RSI value of 88 and index value of 39,000.

 

Disclaimer: Stocksnequities is a news & analysis blog for Pakistan Stock Exchange. We simply give our analysis as per market data and it should not be taken as recommendation or a stock tip. Stocksnequities bears no responsibility for any profit or loss realized in stock market by our individual readers.

Umer Akhtar

Umer Akhtar

Umer Akhtar has an diverse experience in commercial & corporate banking. He has been associated with several websites covering NYSE and NASDAQ. Mr. Umer Akhtar holds a command over fundamental & technical analysis of stocks and capital markets.

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