World-Beating Pakistan Stock Rally Triggers Overbought Signal
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Pakistan’s world-beating stock market is approaching overheated levels as a widely tracked measure of momentum rises to the highest in 18 years.
The KSE-100 Index 14-day relative strength index exceeded 90 for the first since March 2005. In the previous 14 instances when the metric surpassed this reading, the gauge declined over the next 20 days on eight occasions by an average 4.2%, data compiled by Bloomberg show. Stocks in Pakistan have rallied to become the best performer globally since July as the nation secured a deal with the International Monetary Fund to avoid a sovereign default.