Pakistan Stock Market Faces Bearish Trend as KSE-100 Index Declines

Karachi: The Karachi Stock Exchange (KSE-100) index has witnessed a bearish trend, with a significant drop of 4,655 points, closing at 158,443. Trading volumes also saw a slight dip, with 1,361 million shares traded compared to 1,401 million previously.

The index is projected to test support levels between 157,250 and 157,680. A further decline could see it targeting the 154,238 and 152,378 levels. On the upside, resistance is expected at the 30-day moving average, currently at 159,570. Technical indicators, including the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), continue to suggest a negative outlook. Investors are advised to exercise caution.

In company-specific movements, DG Khan Cement (DGKC) is anticipated to have completed its correction phase. The advised strategy for DGKC is ‘Buy on Dips,’ with targets set at Rs243.79 and Rs252.88, and a stop loss at Rs230.01.

Meanwhile, Pakistan State Oil (PSO) is expected to continue its downward trend. The recommended strategy is ‘Sell on Strength,’ with target prices of Rs455.53 and Rs445.29, and a stop loss at Rs468.91.

These insights were provided by JS Global, reflecting the current technical outlook of the Pakistan stock market.