Pakistan Stock Market Faces Downward Pressure as KSE-100 Declines

Karachi: The KSE-100 index, the benchmark for Pakistan’s stock market, experienced a significant decline, closing at 167,752 points, a decrease of 1,238 points from the previous day. Trading volumes also saw a reduction, with 1,274 million shares exchanged compared to the prior trading session’s 1,573 million shares.

The index is poised to test its support levels, which are identified between 166,050 and 167,700 points. A breach below this range could lead to further declines, targeting 165,121 and 162,113 points. Conversely, resistance is anticipated in the 169,320 to 170,000 range. Technical indicators such as the Relative Strength Index and the Stochastic Oscillator have moved lower, suggesting a corrective trend may be underway.

Market analysts advise investors to exercise caution at elevated levels and to consider waiting for market dips before making further investments. The support and resistance for the index are pegged at 166,058 and 169,387, respectively.

In specific stock strategies, Maple Leaf Cement Factory Limited (MLCF) is recommended for a ‘buy on dips’ approach, targeting price points of Rs109.02 and Rs111.95, with a stop-loss at Rs105.75. Similarly, Pakistan Petroleum Limited (PPL) is expected to see recovery, with a ‘buy on dips’ strategy targeting Rs206.50 and Rs212.35, and a stop-loss set at Rs197.03.

The insights are provided by JS Global, a leading financial services company.