Kaspi.kz Shares Hit Annual Low Ahead of Earnings Report

Kaspi.kz shares are experiencing a pronounced downward trajectory, touching new annual lows as the market anticipates the company's upcoming quarterly results. Technical indicators and recent price movements currently paint a bearish picture, leaving investors to question whether Monday's financial release can reverse the negative momentum.

All eyes are on Monday's earnings report, which market participants believe will determine the stock's near-term fate. Expectations remain elevated despite the recent share price weakness. Financial analysts project a substantial 40.4% revenue increase to approximately $1.79 billion. Their earnings per share forecasts range between $2.92 and $4.31.

The critical question facing investors is whether Kaspi can meet or exceed these projections sufficiently to break the persistent downward trend. Market tension is palpable as the equity trades at its lowest level in fifty-two weeks.

Technical Indicators Signal Persistent Weakness

The stock's Friday performance delivered another disappointment to shareholders, declining 0.7% to close at $71.29. The broader picture appears even more concerning, with the security shedding over 5% during the past two weeks alone. Since the beginning of the year, the cumulative loss has reached a substantial 24%.

Should investors sell immediately? Or is it worth buying Kaspi.kz?

The equity recently established a new fifty-two week low at $71.71, confirming the bearish technical posture. For traders navigating such clear technical signals, condensed candlestick analysis can sometimes help identify potential reversal points and optimal entry or exit timing. ****

Innovation Continues Amid Market Challenges

Despite the struggling share price, Kaspi.kz continues to advance its technological initiatives. In October, the company unveiled "Kaspi Alaqan," a groundbreaking payment system based on palm recognition technology. Starting in December, consumers in Almaty will be able to make payments without requiring a mobile device, card, or internet connection.

Institutional investor interest appears to remain intact. Both Sumitomo Mitsui Trust Group and Renaissance Capital increased their positions during the third quarter, suggesting that some sophisticated market participants may be anticipating an eventual trend reversal.

Key Data Points:
- Stock reached 52-week low of $71.71
- 24% decline year-to-date
- Quarterly results scheduled for November 10 with 40% revenue growth expectation
- New palm payment system launching in December