Morning Market Brief 2nd Sep. 2020
Technical Overview
The Benchmark KSE100 index is moving in an upward price channel on hourly chart and have succeeded in closing above its initial resistant region of 40,200pts during last trading session but sentiment is still bullish as index have rejected effects of previous weekly evening shooting star by creating a bullish engulfing pattern. As of now it's expected that index would try to continue its bullish journey towards 41,500pts and breakout of this region would call for41,760pts, meanwhile it would face major resistance between 42,000pts-42,200pts. While on flip side in case of bearish pressure index would try to find ground at 41,000pts where a strong horizontal supportive region would try to push index in upward direction followed by a strong supportive region at 40,780pts.
It's recommended to stay cautious and trade with trailing stop loss because daily and hourly momentum indicators are slightly under pressure as MACD have turned its direction towards bearish side on both time frames and if it would not start recovery then index start sliding any time. Meanwhile stochastic is trying to generate a bullish crossover on hourly chart which would try to pump some fresh volumes but daily stochastic seems turning down which could be dangerous if MACD would not start a pull back.
Regional Markets
Stocks gain on brisk U.S. manufacturing survey, stimulus hopes
Asian shares inched up on Wednesday following buoyant U.S. manufacturing indicators and a rally in U.S. tech shares, with investors also expecting more policy support from Washington. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.25% while Japan’s Nikkei advanced 0.35%. Mainland Chinese shares slipped a tad, with bellwether CSI300 index giving up 0.3% on investor caution after having hit a five-year high earlier this week. On Wall Street, both the S&P 500 and Nasdaq boasted record closing highs, with gains of 0.75% and 1.39% respectively, with the technology sector leading the charge.Read More...
Business News
Govt approves special power, gas rates for erstwhile 5 zero-rated industries
The government has approved special electricity and gas rates for erstwhile 5 zero-rated industries to increase the country’s exports. “In a meeting held yesterday between the Ministries of Commerce, Finance and Energy, it was agreed that erstwhile 5 zero-rated industries will be given a rate of 7.5 cents (¢) per kWh for July & August and 9 ¢/kWh thereafter. For gas, the rate will be $6.5/MMBtu throughout,” said Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood on Twitter. In wake of the situation created by COVID pandemic, he felt that ministry of commerce has obtained a very good rate. He asked the exporters to concentrate on growth of the country’s exports.Read More...
Nepra reserves judgment on CPPA petition for hike in power tariff
National Electric Power Regulatory Authority (NEPRA) has reserved its judgment on the Central Power Purchasing Agency (CPPA) petition for increase of Rs0.86 per unit in power tariff, under fuel price adjustment, for the month of July. In a public hearing conducted by Nepra, the regulator has indicated allowing CPPA to increase the power tariff by around Rs0.84 per unit, however later the regulator has issued a statement saying that it has reserved its judgment in the matter. According the Nepra’s spokesman, the Authority conducted a public hearing on Fuel Price Adjustment for the month of July 2020 in the matter of X-Wapda DISCOs on 1“ September, 2020.Read More...
Inflation eased down to 8.2pc in Aug
Inflation eased down to 8.2 percent in the month of August despite increase in the prices of petroleum products in the last month. Inflation measured through the Consumer Price Index (CPI) was recorded at 8.2 percent in August this year over the same period of last year, according to the latest data of Pakistan Bureau of Statistics (PBS). The inflation remained lower against the projection of Ministry of Finance, as it had estimated inflation would remain within a range of 8.4 to 9.7 percent in August 2020. The ministry said that international food prices continued to remain fairly stable. On the other hand, in recent months, international price of oil tends to recover from recent lows and the USD/PKR exchange rate has been rising gradually.Read More...
PRA collected Rs8.6b in August
Punjab Revenue Authority has registered a growth of 39% in August in comparison to the same period last year. A provisional revenue collection of Rs.8.6 billion has been registered in August.It is worth mentioning here that due to the impact of COVID-19, the rate of taxes of over 20 services were reduced from 16% to 5% yet this record collection is encouraging. This also happens to be the highest recorded revenue collection for the month of August in the history of PRA. Chairperson PRA praised the efforts of the officers and appreciated their revenue planning and collection efforts. He also instructed the officers to keep up the hard work as they are on the right track of accomplishing this year’s revenue target.Read More...
Disclaimer
Information and opinions contained herein have been compiled or arrived at by Us from publicly available information and sources that We believe to be reliable. Whilst every care has been taken in preparing this research report, no research analyst, director, officer, employee, agent or adviser of any member of Our Team gives or makes any representation, warranty or undertaking, whether express or implied, and accepts no responsibility or liability as to the reliability, accuracy or completeness of the information set out in this research report. This research report is for information purposes only and does not constitute nor is it intended as an offer or solicitation for the purchase or sale of securities or other financial instruments. Neither the information contained in this research report nor any future information made available with the subject matter contained herein will form the basis of any contract.
High Risk Investment
Trading foreign exchange, Commodities and Equities (Stocks) on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, Commodities and Equities (Stocks) you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss in excess of your initial investment. You should be aware of all the risks associated with foreign exchange, Commodities and Equities (Stocks) trading and seek advice from an independent financial advisor if you have any doubts.
Market Opinions
Any opinions, news, research, analyses, prices or other information contained on in this report is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Accuracy of Information
The content of this report is provided for the sole purpose of assisting traders to make independent investment decisions. We have taken reasonable measures to ensure the accuracy of the information on the website; however, it does not guarantee accuracy and will not accept liability for any loss or damage which may arise directly or indirectly from the content or from your inability to assess the report, or for any delay in or failure of the transmission or the receipt of any instruction or notifications sent through this report.