Pakistan Stock Exchange PSX closed on a bullish note for the second consecutive day. KSE 100 index benchmark surged 1.41 percent or 569.77 points to close at 40,862.59 points as on August 26th, 2020. A continuation of bullish sentiments from yesterday added 602 points in index in intraday. Market moved with high volume numbers as today’s traded volume stood at 273.51 million shares as compared to volume of 273.13 million shares yesterday.
KSE All share index also increased by 1.06 percent to 28,565.37 with overall volume of 507.95 million shares as compared to 535.04 million shares yesterday.
Today’s bullish drive was also backed by old school fundamentals POL reported better than expected financial results and higher dividend payout making Oil & Gas Exploration sector the 2nd highest contributor to the index appreciation. The market was lead mainly by banking sector in anticipation of CPI data due next week, which could eventually trigger a monetary policy decision in September.
The bullish sentiments were also fueled by reports on the media that non residents Pakistanis will be able to open digital accounts from next week to trade in Pakistan Stock Exchange. Cement, Fertilizer and Chemical were among the other sectors that contributed to the increase of stock market index.
Pakistan Refinery Limited PRL remained the top traded stock of the day, gaining 1.72 percent to close at Rs. 18.37 with volume of 48.95 million shares. HASCOL remained the 2nd most traded stock with volume of 36.05 million shares, however declined by 1 percent to close at Rs. 16.79. KAPCO followed up with volume of 18.54 million shares and almost capped by 6.56 percent to close at Rs. 29.90. Maple Leaf Cement Factory, MLCF and TRG also increased 1.91 percent and 0.02 percent to close at Rs. 36.25 and Rs. 56.70 with volume of 17.21 million and 16.78 million shares respectively.
As of today, the relative strength index for KSE 100 index benchmark has reached the value of 74 clearly indicating that it is in its overbought level. However in history we have seen the KSE 100 index touching its RSI value of 88, basis on which we can establish that the Pakistan Stock Market’s benchmark has the cushion of further appreciation of almost 14 points in its RSI. As explained in our video we foresee the index to be bullish in long term, however minor corrections and range bound trading sessions have to be reported to a stronger bullish momentum.
Average True Range for KSE 100 index stands at 518 points, depicting that index is maintaining its average daily fluctuation of 518 points.
Among other indicators we categorize Ichimoku Cloud and Stochastic as bullish and MACD as bearish and Relative Strength Index and Commodity Channel Index as neutral after today’s session.