KASB Securities Limited and Economics Research- The Keystone – Equities

Karachi, June 29, 2012 (PPI-OT): KSE-100: KSE-100: Formation suggests consolidation around 30-DMA

According to KASB Securities Limited,

• The index’s formation suggests that it is consolidating around the 30-DMA.

• The Stochastic Oscillator maintains its buy signal while the RSI and MACD continue to inch up, while maintaining their respective buy signals.

• KASB Securities Limited suggests accumulating on weakness.

Analysis and Overview:
The index opened positive however remained range bound to close marginally in the green. Volumes declined by 33% and stood at 63mn. Although the index registered a higher high and a higher low, its formation suggests that it is consolidating around the 30- DMA. The saving grace for the index was the fact that it held ground above the 30-DMA.

The Stochastic Oscillator maintains its buy signal while the RSI and MACD continue to inch up, while maintaining their respective buy signals. This suggests that it is in a consolidation phase in the near term with the overall trend remaining bullish.

KASB Securities Limited suggests accumulating on weakness.

The first support is at 13,736 points and the second support is at 13,664 points. The first resistance is at 13,881 points and the second resistance is at 13,955 points.