June 20, 2024 (MLN): The world's best-performing stock market may extend its rally further, technical indicators suggest.
Investors who put store in technical analysis track relative strength index (RSI) as a measure of momentum.
Only 8% of the KSE-100 Index companies' RSI — a 0-100 gauge meter — has climbed above the level of 70 typically seen as overbought.
Generally, the RSI is considered overbought when above 70 and oversold when below 30.
Furthermore, overall technical ratings — a technical analysis tool that combines the ratings of several technical indicators — rate 17 of the 100 index companies as a 'Strong Buy', 49 as 'Buy', and only 25 as 'Sell'.
| Symbol | Close | RSI | Recommendation |
|---|---|---|---|
| ATRL | 361.47 | 42.35 | Sell |
| BAFL | 66.12 | 66.58 | Strong Buy |
| BAHL | 106.13 | 68.42 | Strong Buy |
| CHCC | 164.14 | 56.72 | Strong Buy |
| COLG | 1195.93 | 23.84 | Sell |
| DGKC | 92.73 | 61.83 | Buy |
| EFERT | 165.47 | 68.42 | Buy |
| ENGRO | 334.46 | 47.66 | Neutral |
| FFC | 144.09 | 56.16 | Buy |
| HBL | 112.37 | 53.77 | Strong Buy |
| HUBC | 145.46 | 67.90 | Buy |
| LUCK | 946.44 | 69.37 | Buy |
| MARI | 2719.58 | 52.77 | Buy |
| MCB | 224.26 | 68.07 | Strong Buy |
| MEBL | 242.49 | 62.53 | Strong Buy |
| MLCF | 38.31 | 51.17 | Buy |
| MTL | 658.41 | 67.80 | Buy |
| NRL | 272.02 | 45.08 | Sell |
| OGDC | 131.21 | 52.26 | Buy |
| POL | 481.17 | 52.74 | Buy |
| PPL | 119.76 | 53.11 | Buy |
| PRL | 23.86 | 37.01 | Sell |
| PSO | 171.67 | 51.06 | Buy |
| SEARL | 59.86 | 55.84 | Buy |
| SHEL | 138.55 | 48.03 | Neutral |
| SNGP | 65.52 | 49.88 | Buy |
| SYS | 437.81 | 58.15 | Buy |
| TPLP | 9.82 | 33.47 | Sell |
| TRG | 64.28 | 48.56 | Sell |
| UBL | 239.81 | 80.21 | Strong Buy |
Note: Table includes KSE-30 companies only
To note, the overall rating of the indicator includes several moving averages with different lengths, the Ichimoku Cloud, and several oscillators.
Pakistan stock market has rallied 85% and is also the best performer globally in USD terms since the Stand-By Arrangement (SBA) was reached with the International Monetary Fund (IMF) towards the end of FY23.
Following the completion of the program, the country is now in talks with the lender for a larger and longer loan, estimated to be about $6-$8 billion.
Disclaimer: The views and analysis in this article are the opinions of the author and are for informational purposes only. It is not intended to be financial or investment advice and should not be the basis for making financial decisions.
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Posted on: 2024-06-20T05:30:00+05:00
