Morning Market Brief 14th Sep. 2020
Technical Overview
The Benchmark KSE100 index would try to bounce back in bullish direction on intraday basis because strong supportive regions are standing ahead between 42,500pts till 42,200pts, mean while its correction would be completed on hourly chart which would strengthen its momentum for next bullish rally. Hourly momentum indicators are in mixed mode but bullish strength would prevail because MACD is still in positive zone and to strengthen its bullish momentum stochastic on hourly chart is ready for a bullish crossover therefore these both elements would also try to push index into positive direction which may lead index initially towards 42,860pts while closing above this region would call for 43,000pts and 43,200pts. It's recommended to post trailing stop loss on existing or new long positions until index succeeds in closing above 43,200pts.
While on flip side index is being capped by resistant trend line of its rising wedge on daily chart since last week and this region is reacting as a strong resistant region and it would try to cap bullish momentum during current trading session at 42,900pts. In case of rejection from this resistant region index would not succeed in expanding its intraday correction and it would lead investors towards panic selling which would push index towards 42,240pts while breakout below that region would call for 41,900pts.
Regional Markets
Asian shares on firm footing as vaccine trials resume
Asian shares started higher on Monday as hopes of a coronavirus vaccine were rekindled after AstraZeneca resumed its phase-3 trial while sentiment was still cautious ahead of a big week of central bank meetings in UK, Japan and the United States. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5%, poised for its second straight session of gains. Australian shares .AXJO climbed 0.2% while Japan's Nikkei .N225 added 0.3%. U.S. stock futures, the S&P 500 e-minis ESc1, rose a solid 0.8% after a mixed session on Wall Street last week. Friday marked six months since the World Health Organization (WHO) declared the coronavirus a pandemic on March 11.Read More...
Business News
Cars sale up by 8pc in August
The sale of cars in August 2020 increased to 9,885 units compared to the sale of 9,126 units in same month of the preceding year, showing an increase of 8.31 percent. During first two months (July-August) of the current fiscal year, the auto sale witnessed a minor decline as it fell to 20,008 units against 20,094 units in July-August (2019-20), latest data released by Pakistan Automotive Manufacturing Association (PAMA) said. According to break up figures, the sale of Honda cars (Civic and City) sharply increased by 64 percent to 4,190 units in two months of current year from 2,558 units in the corresponding period last year. The sale of Toyota Corolla, however, registered a decrease of 49.8 percent as it went down from 1,727 units in the corresponding month of last year to 867 units in same month of 2020.Read More...
Pakistan spends over $386m on IT services import
Pakistan has spent $386.951 million by acquiring different information technology (IT) services from various countries during the fiscal year 2019-20. This shows decrease of 12.26 per cent when compared to $441.040 million spent through provision of services during the corresponding period of last fiscal year 2018-19, Pakistan Bureau of Statistics (PBS) reported. During the period under review, the imports of computer services witnessed nominal increase of 1.38 per cent as it surged from $319.880 million last year to $324.280 million during July-June (2019-20).Read More...
Pakistan, China to sign development agreement of CPEC SEZ Rashakai today
Pakistan and China to sign Development Agreement of the First China Pakistan Economic Corridor’s (CPEC) Special Economic Zone (SEZ) Rashakai today (Monday). The signing of the Development Agreement of Rashakai SEZ under CPEC would realise the vision of special economic zones’ development, ultimately leading to a prosperous and industrial Pakistan, said Board of Investment (BOI) Chairman Atif R. Bokhari. The signing ceremony will be held at the Prime Minister House and would be attended by the Federal Ministers, Officials from line ministries and KP Government and other stakeholders. Under CPEC nine SEZs have been identified with one each in Punjab, Khyber Pakhtunkhwa, Balochistan Islamabad, FATA, Azad Kashmir and Gilgit-Baltistan. There are two SEZs in Sindh which includes Industrial Park Pakistan Steel Mills Port Qasim and Dhabeji Special Economic Zone. Read More...
SPI inflation increases 0.37pc
The Sensitive Price Indicator (SPI) based weekly inflation for the week ended on September 10, for the combined consumption group, witnessed increase of 0.37 percent as compared to the previous week. The Sensitive Price Indicator (SPI) for the week under review in the above mentioned group was recorded at 136.62 points against 136.11 points registered in the previous week, according to the latest data of Pakistan Bureau of Statistics (PBS).Read More...
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