Morning Market Brief 1st Oct. 2020
Technical Overview
The Benchmark KSE100 index have face rejection from correction levels of its previous bearish rally and continued its bearish momentum during last trading session. As of now it's expected that index would face some serious pressure initially which would push it towards 40,500pts and 40,200pts while breakout below that region would call for 40,000pts and 39,760pts in coming days. It's recommended to stay cautious and start selling on strength once index succeeds in closing below 40,500pts. Daily and hourly momentum indicators are still in bearish mode and today's closing below 40,500pts would confirm that index have started taking impact of its weekly evening shooting star. It's recommended to avoid initiating new long positions until index gave a clear reversal sign on daily chart.
Regional Markets
Asian shares set for bouncy session after Wall Street gains, weak dollar
Asian equities were poised for a bouncy session on Thursday after U.S. stocks posted a second consecutive quarter of gains and safe-haven assets, including the dollar, were mixed.Australian S&P/ASX 200 futures YAPcm1 were up 0.19%, while Japan's Nikkei 225 futures NKc1 were up 0.32%. The Nikkei 225 index .N225 closed down 1.5% at 23,185.12 on Wednesday. The futures contract is up 0.84% from that close. Hong Kong's Hang Seng index futures .HSI.HSIc1 were up 1.38%. Market participants were also digesting Tuesday’s contentious U.S. presidential debate, where President Donald Trump and Democratic challenger Joe Biden talked over each other and traded insults as they sparred over the COVID-19 pandemic, healthcare and the economy.Read More...
Business News
Govt reduces HSD price by Rs2.40/litre, LPG up by Rs2.87/kg
The Federal Government has reduced the price of High Speed Diesel (HSD) by Rs.2.40 per litre while the price of Petrol will remain unchanged for the first 15 days of October. The Federal Government has decided to reduce the price of High Speed Diesel by Rs2.40, not to change the prices of MS Petrol, Kerosene Oil and Light Diesel. These prices will be effective from 1st October 2020, said a notification issued by Finance Division. Meanwhile the government also increased the price of indigenous LPG by 2.45 per cent to Rs1,416.29 per 11.8/kg cylinder for October 2020. It is worth to mention here that for the month of September Oil and Gas Regulatory Authority (Ogra) had proposed the government to reduce the prices of petrol and HSD by for the first half of October 2020. Read More...
Pakistan and ADB ink loan agreement worth $300 million
-Pakistan and Asian Development Bank (ADB) on Wednesday signed loan agreement worth $300 million that was approved by Manila-based lender few days before. The loan agreement was signed by Noor Ahmed, Secretary the Economic Affairs Division, and Country Director of the ADB. Makhdum Khusro Bakhtyar, Minister for Economic Affairs, witnessed the loan signing of Third Capital Market Development Programme (Subprogramme -1) amounting to USD 300 million between the government of Pakistan and the Asian Development Bank. Third Capital Market Development Program will facilitate the design and implementation of reforms that are necessary to create an enabling environment for the emergence of competitive capital markets and to achieve greater capacities in size of financial markets. Read More...
ECC grants Rs19.66 billion for golden handshake scheme for PSM employees
The Economic Coordination Committee (ECC) of the Cabinet on Wednesday has approved funds for golden handshake scheme for Pakistan Steel Mills (PSM) employees and increasing power tariff for the consumers using up to 200 units by Re0.32 (32 paisas). The ECC chaired by Adviser to the Prime Minister on Finance and Revenue Abdul Hafeez Shaikh has decided to rationalise the tariff of the power sector-FCA and quarterly adjustments which were due for the period from November 2019 to June 2020. According to the decision there would have been an increase in tariff to the tune of Rs1.62/ kWh but the forum also decided to add subsidy to the price for the end consumers that comes to about Rs1.30/kWh, so the net increase that will be passed on to the consumers of electricity up to 200 units will only be Rs0.32 (32 paisas).Read More...
Italy-Pakistan Footwear Technological Centre opened
Minister for Industries & Trade Mian Aslam Iqbal inaugurated Italy-Pakistan Footwear Technological Centre here Wednesday. Ambassador of Italy in Pakistan Andreas Ferrarese and Ambassador of Pakistan in Italy attended inaugural ceremony through video link. Newly elected chairman Pakistan Footwear Manufacturers Association Imran Malik, outgoing chairman Muhammad Younas and industrialists related to footwear industry attended the ceremony. While talking to media, Aslam Iqbal said that the establishment of Italy-Pakistan footwear technological centre is a good step which will help to improve the standard of local industry. He said problems of leather and footwear industry will be resolved on priority basis and every possible step will be taken to promote this sector.Read More...
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