KSE 100 Index has been in lime light from last few weeks. Pakistan stock market has performed very well in last few weeks which have added to confusion of traders on sustainability of its bullish momentum. Though being argued by many that 100 index is on its overbought level, the benchmark jumped by 791 points in intraday while posted an overall gain of 644.39 points to close at 40,559.15 as on August 11th, 2020 while KSE All Share index gained 1.27 percent or 354.33 to 28,347.69 points.

Volume of KSE 100 index was the most noticeable aspect of today’s trading session as turnover of 401.597 million shares was recorded which happens to be the highest in last 10 years. High volume with substantial gain of index points depicts entrance of more investment and more traders.

Banking, exploration & production, oil marketing companies, cement & fertilizer sectors have contributed in gain of index from last few weeks. However, today session saw several stocks closing on their upper circuit levels including HUBCO, Kot Addu Power Company Limited and Nishat Chunian Power Limited making power generation & distribution sector one of the major contributors in today’s bullish gain.

Oil & gas marketing companies, cement, oil & gas exploration companies and commercial banks also helped in today’s bullish movement. HASCOL also remained capped at Rs. 15.99 for the 2nd consecutive day remaining high traded stock with total volume of 65.44 million shares. Karachi Electric Limited remained the 2nd most traded stock of the day with volume of 36 million shares and closed at $3.88 gaining by 5.43 percent. TRG dropped 3.62 percent to close at Rs. 47.97 with volume of 31.21 million shares.  Unity Foods & Maple Leaf Cement Factory Limited followed up with volume of 22.90 and 22.06 million shares for the day.

Technical Analysis

Technically KSE 100 index has been in overbought level since the 2nd week of July as per relative strength index RSI. The subject technical indicator touched its historical high of 88.07 since then as per today’s trading session RSI has settled at 82.22. As per technical analysis the index is still in overbought however a longer bullish trend is also forecasted due extremely and record high volumes. KSE 100 Index has to take a small correction or keep a range bound activity for several weeks to have the relative strength index consolidate below 70, so that it can further keep its bullish momentum.

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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