Morning Market Brief 28th Jul. 2020
Technical Overview
The Benchmark KSE100 index have formatted a morning shooting star after getting support from resistant trend line of its rising wedge and have succeeded in closing above its initial resistant region of 38,000pts during last trading session. As of now it seems that index would try to open with a positive gap above its initial resistant region of 38,320pts and if it would succeed in doing so then it can target 38,500-38,700pts region where it would face strong resistances. Daily momentum indicators are trying to change their direction towards bullish side and today's closing above 38,320pts would add momentum in index. But its recommended to stay cautious and post trailing stop loss on existing long positions because if index would face rejection from its resistant regions then a sharp bearish rally could be witnessed. On flip side index would try to find support at 37,860pts in case of bearish pressure.
Regional Markets
Gold rockets toward $2,000 as Fed stimulus sinks dollar
Gold rocketed to record peaks at $1,975 on Tuesday while the U.S. dollar plumbed two-year lows as investors wagered the Federal Reserve would reaffirm its super-easy policy outlook this week, and a tolerance for higher inflation.The prospect of endless stimulus allowed Asian shares to shake off coronavirus concerns and Sino-U.S. tensions to make early gains. Nations around the globe are announcing new travel curbs amid a fresh wave of the coronavirus, a setback to hopes for a “V” shaped economic recovery. Yet investors are taking comfort from the prospect of yet more fiscal spending and endless cheap liquidity, with Fed Chair Jerome Powell expected to sound reassuringly accommodative after a policy meeting on Wednesday. “Fed officials have made clear that they will be making their forward guidance more dovish and outcome-based soon,” wrote analysts at TD Securities.Read More...
Business News
Govt to set up panel for probe into petrol shortage
The government has decided in principle to set up a commission to probe the recent shortage of petroleum products, shift oil pricing to quarterly basis and change the pricing mechanism for imported Euro-V petrol and diesel to Platt’s Oilgram instead of PSO imports. A final approval is likely to be granted by the federal cabinet at a meeting on Tuesday. The meeting has a heavy agenda, including a proposal for regularisation of the Naval Sailing Club on Rawal Dam, Islamabad. The meeting will take up 13 issues, including recruitment regulations for the post of chairman and Members of Wapda and an examination of outstanding media dues. The cabinet will also take up a presentation of key economic indicators by the Planning Commission and a progress report on institutional reforms by the Adviser to PM on institutional reforms and austerity, Dr Ishrat Hussain.Read More...
Pakistan registers 91pc growth in FDI under CPEC
The overall 91 per cent growth in Foreign Direct Investment (FDI) in Pakistan got major support from an increase in Chinese investment, mainly in power projects under the frame of China-Pakistan Economic Corridor (CPEC). In the first 11 months of FY20, China was the largest investor with net investment of $855.6 million. The communication sector, mostly the 3G/4G service providers, attracted the largest foreign investment of $73.5 million in May 2020, followed by oil and gas exploration firms $18.6 million and financial businesses $15.5 million, a renowned Chinese scholar Prof. Zhou Rong said on Monday.Read More...
Meeting held between reps of FBR, revenue authorities
A joint meeting was held between the representatives of Federal Board of Revenue and all the Provincial Revenue Authorities to discuss matters of mutual interest including Common Portal - Single Return to facilitate taxpayers and move swiftly towards an environment conducive for doing business. The meeting was chaired by Dr Muhammad Ashfaq Ahmed, Member (IR-Operations) and his team. A presentation on Common Portal - Single Portal was made by Ahmed Kamal, Director I&I-IR, Lahore highlighting the current challenges and proposed way forward. The participants appreciated the initiative taken by FBR and proposed to send their views within 15 days and requested FBR to make such meetings a regular feature so that matters of mutual interest are discussed.Read More...
USF’s budget of Rs11,376m for FY2020-21 approved
Federal Minister for Information Technology and Telecommunication Syed Amin Ul Haque chaired 39th meeting of the Universal Service Fund (USF) Policy Committee and gave approval for the USF’s annual budget of Rs 11,376 million for financial year 2020-21. The meeting approved the minutes of the 38th meeting of the Universal Service Fund Policy Committee and gave approval for the USF annual budget of Rs 11,376 million for financial year 2020-21. Earlier, Universal Service Fund Chief Executive Officer (CEO) Haaris Mahmood Chaudhry briefed the chair about the USF projects for providing broadband services in unserved and underserved areas of the country. The federal minister for IT appreciated the USF projects and gave direction for timely completion of projects and in transparent manner.Read More...
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