Traders breathing sigh of relief after a struggling week in Karachi Stock Exchange

Weekly Forecast for the

2^nd Week of Feb 2010

Bulls reborn noticed in

Karachi Stock Exchange

By

Khalid Saifuddin

Friday, 5^th February, 2010

KSE-100:

From the beginning of the week striving bulls noticed in Karachi stock exchange but wasn’t able to maintain the momentum, the activities of traders were low and the volume declined by 7%. The lack of interest from local and foreign institution was observed in first two days of the week, but later on FIPI started buying on attractive rates. The smaller scrips were in lime light all week, and the blue chip companies were silent.

Fundamentally strong companies manage to maintain their share price during the lack luster activities.

Market accurately tested our precise level by its weekly high and the strongest weekly support. The closing of the week was quite vibrant and market manages to close 1.62% above the earlier week.

MQM PPP conflict was another reason for keeping investors away from the trading hall. For now both parties reached to an agreement but the elevating differences between MQM and ANP may hurt trader’s confidence in coming week. In short the country’s political and economical condition is still not supporting investors to concentrate on their trading plans.

Allhumdollialh the incoming foreign remittances ensuring bulls a little bit. Corporate results of banking sector will lead buyers for new rally. Presently 9,815 is the major resistance for bulls and 9,672 is the strongest support for new developing channel.

It is recommended to analyze the power of the bulls before adding more positions to your portfolio, for the coming week market may follow the range bound activities if the prevailing political conflicts continue. Most likely we are going to see mix activities, possibly some scrip will follow their own trend instead of following the index.

Key strategy for the week will be climbing with the momentarily profit taking.

Key Levels

10,036

9,940

9,815

9,672

9,566

9,395

Market still got the potential to reach the ultimate destination in near future. Key advice is to reschedule your portfolios and gear up for March, 2010. Buy recommended on given support levels for high returns.

Scrip analysis will be available on Sunday the February, 7^th 2010

To see detail weekly report and KSE scrip analysis please call 0213 432 2359 or 0345-276 8680 or email us at safelyinvest@gmail.com

Disclaimer: This commentary, news or key levels are not a recommendation to buy or sell, but rather a guideline to interpret the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. We accept no liability whatsoever for any loss arising from any use of these levels. However the author DOES NOT GUARANTEES the accuracy of information provided on this report and is NOT RESPONSIBLE FOR ANY ERRORS AND/OR OMISSIONS.