Morning Market Brief 16th Sep. 2020
Technical Overview
The Benchmark KSE100 index is being capped by resistant trend line of its rising wedge and have face rejection from this line once again during last trading session. As of now it's expected that it would try to recover after a slight dip to retest those regions again but if this time it would not succeed in penetration above 42,700pts and 42,900pts then some serious pressure would be witnessed which would try to push index below 42,200pts and this rally may extend towards 41,900pts. For current trading session a pullback could be witnessed because index have already completed 50% correction of its last bullish rally on hourly chart and it would try to bounce back before 41,200pts where it 61.8% correction would be completed. For day trading buying on dip with strict stop loss of 41,900pts could be beneficial and in case of reversal index would try to target 41,700pts and 41,900pts. Situation would remain range bound until index would not succeed either in closing above 43,200pts or below 41,500pts therefore swing trading with strict stop loss of both levels also could be beneficial. Index would enter into correction zone once it would slide below 41,500pts therefore it's recommended to keep this region in consideration while trading on long side.
Regional Markets
Big industry grows by 5.05pc on YoY basis in July
The Large Scale Manufacturing Industries (LSMI) production grew by 5.02 per cent on year-on-year basis during the first month of current fiscal year as compared to the corresponding month of last year, Pakistan Bureau of Statistics (PBS) reported Tuesday. LSMI Quantum Index Number (QIM) was recorded at 134.14 points during July 2020 against 127.73 points during July2019, showing positive growth of 5.02 per cent, according to the latest PBS data. The highest increase of 2.25 per cent was witnessed in the indices monitored by the Ministry of Industries, followed by 1.77 per cent increase in indices monitored by the Provincial Board of Statistics and 1 per cent increase in the products monitored by the Oil Companies Advisory Committee (OCAC).Read More...
Business News
PTI govt reduces total trade volume of country, notes PRIME
Policy Research Institute of Market Economy (PRIME), an economic think tank, has noted that PTI’s government has ended up reducing the total trade volume of the country in such a manner that total imports and total exports both have fallen down in an effort to curtail the trade and current account deficits. As 18 per cent of FBR revenue comes from customs duties, and 38 per cent from Sales tax (of which approximately 55 per cent is contributed by imports), naturally FBR revenues were bound to take a hit, which explains the lacklustre revenue performance of the government.Read More...
Export of COVID-19 related equipment, drugs allowed
The federal government on Tuesday has lifted ban on the export of Tyvek Suits and the anti-malarial drugs: Chloroquine and Hydroxychloroquine which are being used as a part of COVID-19 treatment around the world. “The Federal Cabinet, in its meeting held on Tuesday, has lifted the ban on export of Tyvek Suits, the last of the banned PPE items in wake of COVID-19 outbreak, as well as the anti-malarial drugs, including Chloroquine & Hydroxychloroquine, which are being used as a part of COVID-19 treatment around the world,” said Advisor to the Prime Minister on Commerce and Investment Abdul Razak Dawood on Twitter.Read More...
CCP conducts inspection of Pakistan Sugar Mills Association’s offices
As part of an ongoing enquiry into the possible anti-competitive activities in the sugar industry, the Competition Commission of Pakistan (CCP) on Monday has carried out a search and inspection of the Pakistan Sugar Mills Association (PSMA) Lahore and Islamabad offices. The CCP authorised its officers to the ‘Enter and Search’ PSMA premises under Section 34 of the Competition Act, 2010 following indications of PSMA’s anti-competitive activities including, but not limited to, the collective stoppage of crushing in season 2019-20, collective rise in prices of sugar, and collective refusal to supply sugar to Utility Store Corporation (USC) as recently reported.Read More...
Rashakai SEZ to set new direction for modern industrialisation
The Board of Investment (BOI) on Tuesday said that the Rashakai, Special Economic Zone (SEZ) would set a new direction for the modern industrialisation in Pakistan and bring huge Foreign Direct Investment (FDI) in the country. Recently the Pakistan and China signed the development agreement of the Rashakai SEZ under China Pakistan Economic Corridor’s (CPEC) to promote the Ease of Doing Business (EODB) in the country, BOI Federal Secretary Ms Fareena Mazhar said this while talking to APP here. Through this milestone in the economic history of the country, the government wants to provide conducive business environment for bringing Foreign Direct Investment (FDI) in the country, she said.Read More...
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