ZSL, Day Wrap
The 100 index staged a brilliant comeback following the start of New Year, although overall market participation was 124mn shares against 144mn shares of previous session, the 100 index managed to move past some key resistances today. While staging a 412.64 point (+1.26%) rally today the 100 index took out 20EMA, 50EMA and descending trend line resistance convincingly. Pertinent to note here is lack of foreign participation due to an extended weekend on account of New Year holiday in most countries. Just a reminder, foreigners remained net sellers during the outgoing year to the tune of 315mn USD.
Today’s rally was broad based banking on gains in construction materials, automobiles, textile, OMCs, refineries, E&P, fertz, commercial banks, multi utilities, pharma and tobacco. Major contribution towards index gains came from LUCK, DGKC, ENGRO, HUBC and FCCL while on the flip side FATIMA, BATA, LPL, JDWS and IDYM were the main laggards for the day. During the course of the session, (PBS) announced December CPI number at 3.19% against market consensus of 3.89% as per Bloomberg. This added fuel to the rally at large adding another 147 points during the second session.
From technical perspective, today’s rally bodes well for the overall direction of the 100 index creating room to post its first higher high formation since 4th November, 2015. With next major resistance at 33,700
No comments:
Post a Comment