Morning Market Brief 17th Sep. 2020
Technical Overview
The Benchmark KSE100 index is sliding downward after getting resistance from resistant trend line of its rising wedge along with a strong horizontal resistant region on daily chart, as of now it's expected that index would try to open with a negative gap below 42,200pts and would try to find some ground between 41,900pts-42,000pts region where supportive trend line of this rising wedge along with a strong horizontal supportive region would try to pump some fresh blood but in case index would not succeed in holding above 41,900pts then some kind of serious pressure would be witnessed which would push index towards 41,500pts. While on flip side in case of bullish reversal from its supportive regions index would face resistances at 42,400pts initially followed by 42,500pts and 42,730pts. Daily momentum indicators are already in bearish mode and today's closing below 42,000pts would strengthen bearish sentiment but it's recommended to trade with strict stop loss until index gave a clear signal of reversal.
Regional Markets
Global stocks fall as Fed fails to offer fresh cause for cheer
Stocks fell and the dollar advanced on Thursday after the Federal Reserve pledged to keep interest rates low for a long time but stopped short of offering further on stimulus to shore up a battered U.S. economy. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.82%, running out of steam after five straight days of gains. Japan’s Nikkei shed 0.45%. U.S. S&P 500 futures fell 0.87% in Asia on Thursday following a 0.46% drop in the S&P 500 on Wall Street. Tech shares fared worse, with the Nasdaq Composite dropping 1.25% on Wednesday. Nasdaq futures dropped 1.13% in Asia. The Fed said it would keep interest rates near zero until inflation is on track to “moderately exceed” the central bank’s 2% inflation target “for some time.”Read More...
Business News
ECC sanctions import of customs duty free cars under disabled persons’ scheme
The Economic Coordination Committee (ECC) of the Cabinet on Wednesday has approved the import of customs duty free cars under disabled persons’ scheme. The ECC, which was chaired by Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh, has allowed the amendment in the import of Customs Duty Free Cars under disabled persons’ scheme. Under the new amendments the income bracket of the person who is importing the vehicle is increased from the current limit of Rs20,000 to Rs100,000 to Rs100,000 to Rs200,000 per month. He will be allowed to import the vehicle if he has not imported or purchased locally assembled car during the last 10 years under the scheme provided that he holds NTN Certificate and files annual tax return.Read More...
CDWP approves four projects worth Rs12.25 billion
Central Development Working Party (CDWP) Wednesday approved four projects worth Rs12.25 billion and recommended two projects worth Rs33.427 billion to ECNEC for consideration. Central Development Working Party (CDWP) meeting, presided over by Deputy Chairman Planning Commission Mohammad Jehanzeb Khan, also allowed extension in re-tendering of one project worth Rs12.10 billion. Senior officials from Federal and provincial governments were also present in the meeting. Projects related to energy, social welfare and water resources were presented in the meeting. CDWP approved 04 projects worth Rs. 12.25 billion and recommended 02 projects worth Rs. 33.427 billion to ECNEC for consideration & allowed extension in re-tendering of one project worth Rs 12.10 billion in the meeting.Read More...
WTO faults US over Trump’s China tariffs
The World Trade Organization has upheld a complaint by China over additional US duties on some $250 billion of Chinese goods, a decision that sparked outrage in Washington. The Geneva-based body has been caught in the middle of trade tensions between the United States and China, and has faced relentless attacks from President Donald Trump. The tariffs, imposed in 2018, marked the beginning of the trade war between the world’s two largest economies. But a panel of experts -- set up by WTO’s Dispute Settlement Body last year to review the US move -- ruled Tuesday the tariffs on Chinese goods were “inconsistent” with global trade rules, and recommended the US “bring its measures into conformity with its obligations”. Read More...
Rs30.80 billion disbursed to 893,000 borrowers under interest-free loan programmes
The government has distributed loan of around Rs30.80 billion in 110 districts of the country under Interest free loan programmes since July 2019. An interest free loan of Rs30.80 billion were distributed among 893,000 deserving people of 110 districts in Pakistan since July 2019, said SAPM Dr. Sania Nishtar yesterday. The loan is being provided for poultry farming, fish farming, manufacturing, engineering, beauty parlors, barber shops etc. Among the beneficiaries of the Interest Free Loan 46 percent were women, she said. Pakistan Poverty Alleviation Fund (PPAF) is the implementing agency of the Ehsaas initiative which provides loans through partners-Akhuwat being the largest of the 24 partners. Under Ehsaas strategy, Interest free loans are a major component of the National Poverty Graduation Initiative.Read More...
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