Bulls dominated the Pakistan Stock Exchange PSX today as it witnessed 5 consecutive sessions of correction in last week. The KSE 100 Index benchmark jumped by 1.23 percent or 490.22 points to close at 40,282.82 points as on August 25th, 2020. The total traded volume for the day stood at 273.13 million shares as compared volume of 172.64 million shares in last trading session.
KSE All share index also gained b y 1.20 percent or 335.39 points to close at 28,266.28. The total volume for the All share index stood at 535.04 million shares as compared to volume of 371.69 million shares in its last trading session.
Economically and fundamentally there were several factors that boosted investors’ bullish sentiments. Overall globally stock markets also moved on a positive note whereas WTI crude oil prices also gained 0.35 percent to $42.77 and Brent crude oil price appreciated 0.72 percent to $45.97.
Ministry of Economic Affairs reported an increase of 263 percent in gross foreign loans at 1.8 billion as compared to last year. According to their numbers the government of Pakistan received almost $800 million as external inflow in just first month of fiscal year 2020-21.
The sectors the contributed the most in KSE 100 index gain were Commercial banks, Oil & Gas Exploration, Food & Personal Care and Cement. HASCOL remained the top traded stock for the day with total volume of 50.29 million shares and gained 5.54 percent to close at Rs. 16.95. Right issue of Unity Food remained the 2nd most traded stock of the day with volume of 37.69 million shares and decreased by 6.45 percent to clos3 at Rs. 3.77. TRG and PRL followed up by volumes of 30.06 million and 27.50 million shares and both gained by 3.98 percent and 7.50 percent to close at Rs. 56.63 and Rs. 18.06 respectively. Right issue of Power Cement dropped 13.46 percent to close at Rs. 0.45 with total volume of 18.14 million shares for the day.
KSE 100 Benchmark adjusted its Relative Strength Index value to 62.30 after last week of corrections. Currently its RSI is at 68.95 after today’s bullish session. As explained in the video the KSE 100 Index can further sustain its bullish movement is bound to remain range bound until the value of RSI consolidates around 50-65. Other indicators like Stochastic and Ichimoku Cloud signal a further bullish movement while MACD indicates further correction. We conclude that for 1-2 weeks Pakistan Stock Exchange is likely remain volatile between levels of 40k to 42k and will pick up its bullish momentum once RSI is adjusted in 1-2 weeks time.
Technically market seems bullish as we see stronger volumes as compared to bullish rally of 2019 when market touched the high of 43k. It is assumed that KSE 100 index can cross the level of 45k and even touch 50k.