THE KASB REVIEW

The KSE 100 was headed only one way over the course of the week: down, a week which saw the KSE take a dive of 8.63 % dropping by almost 107 points to close the week at 1129.17. However the market would have taken strength from the fact that the positive trend being witnessed over the last few weeks subsided the apparent bear run witnessed on the day the market opened after the change in government. Though despite the economic and political uncertainty prevalent over the market, the market has demonstrated positive trend, mostly being liquidity driven.
Despite the fundamentals remaining under pressure, which saw the KSE 100 fall by 92 points in a single day, the KSE 100 closed on Friday on a positive note. Though the market did not open for the first half of trading and dropped 60 points upon the resumption of trade, positive elements in the later half of the trading time witnessed the market recouping the losses by 50%. This could also be attributed to the announcement of certain policy decisions, thus subsiding the apparent vacuum of authority after the dismissal of the previous government.
Dispelling the apparent panic selling of Thursday, the market would soon find its bottom line in the near future from where future strategy could be worked upon. For the following week we feel that initial support is likely to arrive near the 1080 while major support is likely to appear at the 1000 levels. Resistance will be felt near the 1140 while major resistance will be encountered near the 1180 levels.