Morning Market Brief 7th Sep. 2020
Technical Overview
The Benchmark KSE100 index have faced rejection from two strong resistant trend lines during last trading session and now it's still being capped by those objects therefore some serious pressure could be witnessed at start of trading session because hourly and daily momentum indicators are facing pressure. It's recommended to stay cautious and start selling on strength with strict stop loss. As of now it's expected that index would face initial resistance at 42,300pts followed by 42,500pts while on flip side 41,700pts-41,800pts regions would try to push index back on track but in case index would succeed in sliding below these both regions then it would start a correction on short term basis.
Regional Markets
Asian shares on shaky footing amid elevated valuations, oil skids
Asian shares were on the defensive on Monday as investors grappled with sky-high valuations against the backdrop of a global economy in the grip of a deep coronavirus-induced recession while oil prices dropped sharply. Chinese stocks started lower while shares of Hong Kong-listed Semiconductor Manufacturing International Corp (SMIC) plunged to the lowest since June 16 on fears the firm could be added to a U.S. trade blacklist. China’s blue-chip index slipped 0.5% and Hong Kong’s Hang Seng eased 0.2%. Japan’s Nikkei fell 0.4% with SoftBank coming under heavy selling following media reports it has spent at least $4 billion buying call options on listed U.S. technology stocks. Australian shares, which had opened in the red, reversed losses to edge up 0.1% led by miners, while South Korea added 0.4%.Read More...
Business News
NTDC challenges Nepra orders on 27-year expansion plan
The government-owned National Transmission & Despatch Company (NTDC) has challenged certain directives of the National Electric Power Regulatory Authority (Nepra), saying these will limit the scope of bidding for lowest tariff and lead the country towards another ‘capacity trap’. The “NTDC believes that while considering these directions, size of committed set of projects would further increase and thus ‘least cost principle’ of the Indicative Generation Capacity Expansion Plan (IGCEP 2020-47) would be adversely affected”.Read More...
Nepra likely to change terms and conditions of K-E’s power distribution licence
National Electric Power Electric Authority (NEPRA) is likely to change the terms and condition of K-Electric’s power distribution licence and has invited comments from the stakeholders regarding the Authority Proposed Modification (APM). In order to encourage competition for provision of electric power services in Karachi to enhance efficiency, to ensure better price, quality of service, choice for consumers and to regularise resale/distribution of electric power business, it is in the public interest to modify the terms of distribution licence of K-E, said NEPRA.Read More...
Pharmaceutical exports increase by 20.11pc
The exports of pharmaceutical products from the country witnessed increase of 20.11 per cent during the first month of current financial year (2020-21) as compared to the corresponding period of last fiscal year. Pakistan exported pharmaceutical products worth $24.526 million during July 2020 as against the exports of $20.419 million during July 2019, showing growth of 20.11 per cent, according to the Pakistan Bureau of Statistics (PBS). In term of quantity, the pharmaceutical exports rose by 31.24 per cent, by going up from 1,181 metric tonnes to 1,550 metric tonnes during the period under review. On month-on-month basis, the exports of pharmaceutical products also grew by 38.13 per cent during July 2020, when compared to the exports of $17.756 million during June 2020, the data said.Read More...
KP govt notifies up to 13pc reduction tax on construction industry
The Khyber Pakhtunkhwa government has slashed the sales tax on services on construction and allied services from 15 per cent to 2 per cent as part of relief initiative in the wake of COVID-19 pandemic as per the vision of Prime Minister Imran Khan. A notification of Finance department issued here said that the provincial government in alignment with the federal construction support initiative has reduced the rate of tax for all types of construction including self-construction of residential houses or projects funded either under Annual Development Program (ADP) or Public Sector Development Program (PSDP). Read More...
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