PSX Today
KSE100 Index closed at 43,523 +0.74% up 319 pts. PSX today remained weak till 12pm but enacted a good V shape recovery afterwards.
PSX is generally under pressure on account of national political scenario, increasing oil prices stroking fears of inflation and balance of payment, and higher interest rates after recent Tbill auction.
Today's initial weakness also reflected roll-over week issues. TRG was more than 5% down at one point and had set tone for the market, but subsequently reversed its downward trend. Subsequently the Market started recovering as positions were being rolled over successfully.
Such a recovery of +500 points shows oversold state of the market and the fact that it is not under any major pressure.
Those poring over 'technical' charts are find bullish 'hidden' messages in todays candle bars. See this.
Day end trading pattern remained the same. (See this). There was however one big chunk ($3.23mn) that was sold by the 'foreigners' in their 'Banks' holding. Recently all of 'foreigners' selling is restricted to 'Banks'. This trend srated after FATF ruling in the first week of this month. Absorption of such a big block transaction shows underlying strength of the market despite the fact that retail investors and punters are away from the market. Things might however change if Oil prices do not return to normal level.
Pakistan continues to face pressure on its Reserves. Today SBP announced that 'Reserves' with SBP have declined by 5.5% to US$14.9bn during the week ending March 18, 2022.
Sri Lankan foreign exchange reserves crisis is making overseas investors nervous, and despite rising interest rates are taking money out. (see news)
See graph of decline in Sri Lankan Rupee
China is understood to have rolled over a payment of over $4bn. This will create some space for Pakistan. (news)