Equities: Bullish Technical Picture

The Mauritian SEMDEX has staged a strong recovery since its early August correction, and is poised for further gains, in our view. Having found trendline support around 1,460, the market has surged by 6.6% since mid-August, to trade at 1,557 at one point on September 8. Importantly, the SEMDEX has in recent days pushed through 1,500, which is a key resistance level, auguring for continued gains from a technical perspective. Looking at a long-dated chart, there is little in the way of resistance until 1,750, implying that the market could rally by an additional 12.5% over the short-to-medium term, barring a significant resurgence in global risk aversion.

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