Morning Market Brief 13th Oct. 2020
Technical Overview
The Benchmark KS100 index have faced rejection from a strong horizontal resistant region along with supportive trend line of its previous bullish trend channel on daily chart after completing 61.8% correction of its last bearish rally during last trading session. As of now a bearish engulfing pattern have been formatted on daily chart which would try to cap its bullish sentiment and would produce power to bearish sentiment of daily MACD, mean while hourly stochastic and MAORSI already have changed their direction towards bearish side and daily stochastic and MAORSI are also trying to generated bearish crossovers and if these both also would succeed in doing so then some serious pressure would be witnessed in coming days. Today's closing below 39,760pts would create panic among investors who trade on basis of technical analysis because index would confirm its expansion mode of bearish correction. Bulls would try to take over the market between 39,760pts-39,500pts and if they would not succeed then massive selling pressure would push index below 39,000pts. While on flip side index would face initial resistance at 41,050pts which would be followed by 41,500pts. Index would remain range bound between 39,500pts o 41,500pts while breakout of either side would push index for further 1,000-1,500pts in respective direction.
Regional Markets
Asian stocks set to rise as tech, stimulus hopes fuel global rally
Asian stocks were set to rise on Tuesday as a renewed tech rally and fresh optimism that Washington would deliver a coronavirus relief package helped lift global equity markets. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.11% higher. Australian S&P/ASX 200 futures rose 1.05% in early trading. Hong Kong’s Hang Seng index futures rose 0.11%. E-mini futures for the S&P 500 rose 0.01%. The dollar index fell 0.078%, with the euro unchanged at $1.1813. The pan-European STOXX 600 index rose 0.72% and MSCI’s gauge of stocks across the globe gained 0.01%. Read More...
Business News
Remittances surge 31.2pc in September
The workers’ remittances sent by the overseas Pakistanis surged by 31.2 per cent to $2.3 billion in September against same month of last year. The remittances stood at above $2 billion for fourth consecutive month in September, said a statement issued by the State Bank of Pakistan (SBP). On month on month basis, the remittances also witnessed an increase of 9 per cent in September when compared to the inflow of $2.095 billion recorded during August this year. The average inflow during first quarter of current fiscal year July-Sept (2020-21) also witnessed a sharp increase of 31.1 percent as it rose to $7.1 billion against $5.45 billion in same period of previous year.Read More...
CDWP approves eight projects worth Rs36 billion
Central Development Working Party (CDWP) meeting on Monday approved eight projects worth Rs 36 billion and recommended seven projects worth Rs 233.014 billion to ECNEC. The CDWP, that met with Deputy Chairman Planning Commission Mohammad Jehanzeb Khan in the chair, deferred the approval of the 2nd revised PC-I for the Gwadar International Airport which is CPEC umbrella project. The CDWP cleared three projects worth Rs111.863 billion for Sindh province, which is partially funded by World Bank. The forum considered projects related to environment, physical planning, transport & communications, water resources and education.Read More...
Pakistan, ITFC sign agreement worth $386m for import of oil, LNG
Pakistan and International Islamic Trade Finance Corporation (ITFC) on Monday has signed agreement amounting $386 million for the import of oil and LNG. The signing of financing agreement amounting to $386 million with the International Islamic Trade Finance Corporation (ITFC), a subsidiary of Islamic Development Bank (IsDB) Group, for import of oil and LNG was held in Economic Affairs Division. This facility will be utilised by Pakistan State Oil Company Limited (PSOL), Pak Arab Refinery Limited (PARCO) and Pakistan LNG Limited (PLL). The Agreement was signed among the Economic Affairs Division and ITFC and the representatives of PSO, PARCO and Pakistan LNG Limited.Read More...
NPMC blames rains, COVID-19 for higher inflation rate
National Price Monitoring Committee (NPMC) on Monday has blamed the recent rains and COVID-19 for the higher inflation rate in the country beside other issues. Finance Adviser, Dr Abdul Hafeez Shaikh chaired a meeting of National Price Monitoring Committee (NPMC) to review the prices of essential perishable commodities, which was held at Finance Division. Inflation rate has increased in the country due to the surge in prices of food commodities. Pakistan’s headline national inflation has accelerated faster than expected to 9.04 percent in September 2020 mainly due to higher food prices in the country. Price of wheat flour and sugar is increasing rapidly in the country. Flour price is around Rs70 to Rs75 per kg and sugar price is in the range of Rs90 to Rs105 in different parts of the country. Similarly, prices of vegetables are also showing upward journey. Read More...
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