Morning Market Brief 6th Oct. 2020
Technical Overview
The Benchmark KSE100 index is moving downward by expanding its intraday corrections on daily basis and impact of weekly evening shooting start have taken index towards correction of its last bullish rally and expansion of its rising wedge in downward direction. As of now it's expected that index would continue its bearish sentiment during current trading session because daily momentum indicators have entered into negative zone and these would try to drag index initially towards 38,700pts to 38,500pts while breakout of this region in downward direction would call for 38,200pts and 37,500pts. Initially 50% correction of recent bullish rally would be completed at 38,000pts and if index would succeed in sliding below 37,500pts then next target would be 36,500pts, while 38% correction of this complete wave would be completed around 36,800pts. Daily MACD have entered into negative zone while stochastic and RSI also have penetrated below 30 and 20 respectively and this indicates that index would start a new bearish journey if it would not succeed in bouncing back from 38,700-38,500pts region. While on flip side in case of bullish reversal index would face major resistances at 39,700pts which would be followed by 40,200pts. On short term basis index would be considered bearish until it would not succeed in closing above 40,500pts.
Regional Markets
Stock markets higher as Trump returns to White House
Asia’s stock markets edged higher on Tuesday, cautiously adding to gains made with an improvement in both U.S. President Donald Trump’s health and prospects for a U.S. stimulus package, while bonds and the dollar nursed losses. S&P 500 futures ESc1 traded steady early in the Asian session, after the best daily gain on the S&P 500 index .SPX in a month overnight. Oil held sharp overnight gains. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2% to a two-week high. Japan's Nikkei .N225 rose 0.4%. South Korea's Kospi .KS11 rose 0.6% and futures point to a positive open in Hong Kong HSIc1. Australia's ASX 200 .AXJO dipped 0.2% in early trade. China's markets remain closed for a holiday. Read More...
Business News
Business Economy-Performance Indicators show economy moving back on growth trajectory
Despite challenges at internal and external fronts, especially owing to the outbreak of Coronavirus pandemic, the prudent strategy adopted by the government helped to put the country’s economy on back on growth trajectory as indicated by many economic indicators. The industrial sector, which was badly affected due to Coronavirus, rebounded and witnessed a considerable positive growth as the Large Scale Manufacturing Industries (LSMI) production grew by 5.02 percent on year-on-year basis during the first month of current fiscal year as compared to the corresponding month of last year, according to Pakistan Bureau of Statistics (PBS). On month-on-month basis, the industrial growth witnessed increase of 9.54 percent in July 2020 when compared with the indices of June 2020. Read More...
Pak, China companies cooperate each other in textile sector
Both as textile powerhouses, Pakistan and China are cooperating each other to increase business in the textile sector, said some traders who have had years of business dealings with Pakistan. Pakistani-made coarse yarn delivers good value for money as its advantage in cotton fiber overcomes the weakness of coarse yarn production in China’s cotton mill, said Ke Jiangwei, General Manager of Xiamen Naseem Trade Co., Ltd., a Pakistani company registered in China, which has imported yarn from Pakistan for many years.Read More...
Chinese mainland reports no new locally transmitted COVID-19 cases
No new locally transmitted COVID-19 cases were reported Sunday across the Chinese mainland, the National Health Commission said Monday. A total of 20 confirmed cases arriving from outside the mainland were reported, the commission said in its daily report. No new suspected cases or deaths related to the disease were reported, the commission said. Of the new imported cases, 10 were reported in Shanghai, three in Sichuan, two each in Inner Mongolia and Fujian, and one each in Shanxi, Jiangsu and Guangdong. On Sunday, seven COVID-19 patients were discharged from hospitals after recovery on the Chinese mainland. By the end of Sunday, a total of 2,921 imported cases had been reported on the mainland. Of them, 2,713 had been discharged from hospitals after recovery, and 208 remained hospitalized, with one in severe condition. No deaths from the imported cases had been reported.Read More...
IHC throws out petition seeking ban on Nawaz's speeches
The Islamabad High Court (IHC) on Monday dismissed a petition seeking a ban on PML-N supremo Nawaz Sharif's speeches, noting that the "tendency of invoking the constitutional jurisdiction of a high court in matters involving political content is certainly not in public interest". The petition stated that Nawaz has started actively participating in politics and has initiated a smear campaign against state institutions, after going abroad on the pretext of availing medical treatment. It urged the court to order that Nawaz's recent "hate speeches" be taken down from the internet and that he should be prohibited from delivering speeches in future. The plea was heard by IHC Chief Justice Athar Minallah.Read More...
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