The overbought positions in the market seems to have been mostly unwinded when considering the low inturnover seen yesterday. The market started rather nervously and during the initial hour saw limited buying on boards that prompted the nervous sellers to start underselling each other creating a panic and the seasoned players started collecting the massive bargains slowly and steadily while the index slipped by around 140 points in early trade dipping below 12000 mark and then you saw a little compitition amongst the buyers who realized the pigs slaughter was ending with the low turnover and the market turned up before reaching the expected support at 11900 .
Overall the market traded on a bracket of around 350 points and closed up 125 points or 1.04% on the ASPI and 62 points or 1.53% up on S&P SL 20 .
The market should consolidate further around this position for a few more days, extending up towards the latter part of the month , so that most of the quarterly results will be out and forecasts for 2023 will start to come out by the research units that will re rate the market fundamentals.
Overall the pull back is a very healthy occurrence for the market to continue it’s uptrend which we believe will start from March provided we don’t have any taxation shocks by the ministry in charge of the economy.
The Turnover and the index is to be focused on and for the recovery to be strong the index movement should be slow and steady as short term profit will hamper the market if it goes up too fast.
