12,370- more improvement
August 30, 2007
The upside continued with the KSE-100 index making a high of 12,387 and clsoing up at 12,370. NBP was the volume leader of the day with 16.4 million shares traded and MCB is up by Rs.37 for the week. The close above 12,300 should lead to a test of 12,500 , unless the market starts wetting itself again on the current political news.
News : Pakistan Petroleum Dealers Association (PPDA) had announced that it will disconnect gasoline sales from Friday for an indefinite period in protest against the reduction in profit margin of 39 paisa on petroleum products by government… Aaj News
The Privatisation Commission (PC) may be dragged into arbitration in London in case of refusal to International Power (IP) for dematerialization of its shares in Kot Addu Power Company (Kapco)…Aaj News
Pakistan Petroleum Limited (PPL) is examining to invest in oil and gas exploration business outside Pakistan…in this regard, the PPL has identified 10 perspective countries where the investment opportunities are suitable for the company. According to the company, Yemen, Morocco, Tunisia, Mauritania, Libya, Uzbekistan, Turkmenistan, Kenya, Tanzania and Mozambique have been identified as countries suitable for investment…The company is the largest producer of natural gas with a share of 26 percent in oil and gas industry of the country…Daily Times
Upper Caps : MCB / JOVC / Soneri Bank / Arif Habib Ltd
Market Low : 12,228.06 High : 12,387.33
Market Close : 12,370.43 — 142.37 points up
There was some improvement in the KSE-100 index with a high of 12,264 and a close at 12,228. There seemed to be some buying across the board, esp. MCB which is up Rs.25 since yesterday. Lucky cement was the volume leader with 13 million shares traded. OGDC and BAFL are lagging in performance in comparison with other stocks that rose today. Hopefully the upside will continue 2moro with 12,300 being tested. A close over 12,300 would be a positive step towards 12,500.
After yesterday’s close at 11,955, the lowest since April 13th, the market dipped down further to a low of 11,852 and then recovered to close up at 12,040. There seems to be undue panic in the market at the moment and hopefully there will be some pullback soon as it is quite oversold and has been fucked out of shape. Relative to recent prices , almost every good stock seems cheap and attractive, until it falls further ! If the market continues to close below its 200 DMA, then 11,500 is plausible. It will be a rough ride for the next month.
The ‘’downslide'’ continued at the Karachi Stock Exchange today with the KSE-100 index dipping below 12k to a low of 11,957. The market then stabilized and finally closed up at 12,326, the first positive close in some days. The next upward resistance is 12,500. While volumes of Vaseline have been expended in the last 2 days, keep the jar at close reach for the moment.
The KSE-100 index got reamed out of shape with a drop of 446 points down at its close. What must have started as basic selling led to snowball into panic as at one stage the market was down by 504 points !! With OGDC down by Rs.4.40 at 111 and many stocks across the board hitting their lower caps , it was one of the worst falls experienced this year. A classic case of selling with low volumes, meaning fuck all ! Hopefully there will be some pullback 2moro from such extreme downside. 12,300 and 12,500 were ripped out as support levels and would be the upward resistance now.
The KSE-100 index opened up at 12,804 , the high of the day and then dwindled downwards to finally close at 12,693. If the index consolidates at these levels , it could test 12,860 heading for 12,950. 
The first half saw the KSE-100 index down to 12,600. In the second session, the index made a quick recovery and raced up to about 12,760 and closed down at 12,698. (The last time the market closed at these levels was May 26th 2007.) World markets have recovered since yesterdays bashing, due to the Federal Reserve cutting its primary credit rate, known as the discount rate, from 6.25 per cent to 5.75 per cent. (That is the rate at which banks can borrow from the Fed if they are unable to borrow from each other. ) The DJIA closed up by 1.82% and the FTSE made nearly a full recovery closing up by 3.5%. Whether this move is a temporary band-aid for the current liquidity crunch, remains to be seen next week. The Karachi Stock market could well open up on Monday and test its next resistance levels of 12,860 and 12,950. For the moment it is finding support at 12,600.
Given the fact that world markets continue to tumble perhaps we should consider ourselves lucky that the KSE-100 index closed down by only 77 points. While the Dow Jones index staged a recovery towards its close today, the FTSE-100 got buggered senseless closing down by 4.10%, its biggest fall since March 2003 . While the downside could continue in world markets due to the current liquidity crunch, we could see some pullback in the Karachi Stock market or being a Friday 2moro, some major bloodshed. 12,600 is holding as a support level at the moment and the next upward resistance is 12,860. The worst is perhaps not over yet, keep applying the Vaseline and let the dust settle.
After opening up, and making a high of 12,820, the KSE-100 index sagged to a low of 12,623 and finally closed up at 12,787. Lucky Cement was the volume leader of the day with 13 million shares traded. Volumes have been low recently and the market could be hitting its bottom with some pullback due soon. The index’s RSI-14 has hit 30, last seen in December 2006 before the whole market took off. The next upward resistance is 12,840 followed by 12,950.
The KSE-100 index got another fisting, and slowly and steadily went down to a low of 12,700 and closing at 12,750. It seems that there was a lot of selling as margin calls were being hit. The downturn of the world’s global markets hasn’t helped either. The Karachi Stock market has now lost about a 1,000 points in the last week or so and some pullback is inevitable. Nevertheless until investor confidence is somewhat restored, keep the Vaseline handy.
Opening up with a gap, after being bashed on Thursday by rumours of a state of emergency being declared, the KSE-100 index started falling again from selling pressure being a Friday and global markets getting fucked as well didn’t help. Closing just above 13,000 a pullback could be seen as RSI-14 levels are low and many stocks have been bashed out of shape. Activity will be stock specific esp. on those stocks which still haven’t announced their results. It will be a rough ride at the moment.
The Kse-100 index has been fucked out shape again in the last two days, made a low today of 13,221 and recovered to close at 13,433. It will be a rough ride from now on until the elections and copious amounts of Vaseline should be purchased and made avalable !
Today was the highest close for the KSE-100 index since it got bashed out of shape 2 weeks ago. The index has been holding 13,600, trading in a narrow band and needs to breakout above 13,800 for further gains . Fauji Cement was the top score in terms of volume with 29.6 million shares traded followed by Bhosricor at 23.6 million. Next week brings the result season into full swing with Shell, PSO and PPL due to announce their results. While the market could well cross 13,800 2moro, being a Friday there could be some weekend selling.
