Morning Market Brief 9th Sep. 2020
Technical Overview
The Benchmark KSE100 index have faced rejection from two major resistant trend lines during last trading session and had created an evening shooting star on daily chart. Meanwhile daily momentum indicators have given a reversal confirmation which indicates for minimum an intraday correction in index which would push index initially towards 41,500pts where bulls would try to fight against current bearish sentiment but if they would not become able to overcome the sentiment then index may start sliding towards 41,280pts and 41,000pts. Index would be considered bullish until it would not succeed in sliding below 40,500pts. It's recommended to start selling on strength with strict stop loss during current trading session. While on cautious side it's recommended to trade with strict stop loss on both sides because index have started sliding downward from a significant resistant region and there are chances of a cheat pattern which could result in a major upset for aggressive traders.
Regional Markets
Tech rout roils Asian shares, oil futures extend slump
Asian shares fell on Wednesday and oil prices hit lows not seen since June after a rout of technology shares sank Wall Street for a third consecutive day and a major drugmaker delayed testing of a coronavirus vaccine.MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slid 1.12%. Australian stocks dropped 2.24%, while shares in China .CSI300 fell 1.16%. Japan's Nikkei .N225 skidded by 1.69%. U.S. S&P 500 E-mini stock futures ESc1 fell 0.01%, but Nasdaq futures NQc1 rose 0.72%. Sentiment for equities and other risky assets also took a hit after AstraZeneca Plc (AZN.L) paused a late-stage trial of one of the leading COVID-19 vaccine candidates due to an unexplained illness in a study participant.Read More...
Business News
Exports declining as govt ignores industrial sector, says FPCCI
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed grave concern over declining trend in exports, which have posted a downfall of around 20 percent to $1.58 billion in August 2020, startling especially for the economic managers who claimed that economy was recovering from the adverse effect of turbulent period of post-corona slowdown. The apex trade body chief Mian Anjum Nisar said that the drop in exports during August period was really surprising, calling for out-of-the-box solutions for economic growth in these crucial times, as COVID-19 has adversely impacted the world economy as well as the Pakistan trade and industrial sectors.Read More...
Petroleum Division in process of formulating shale gas policy
The Petroleum Division is in process of formulating a vibrant policy to exploit massive shale gas and oil reserves by attracting multinational companies in exploration sector of the country. “The Shale Gas Policy is in the process of formulation, which will also attract many multinational companies to come to Pakistan for undertaking exploration to discover Shale gas and oil in the country,” according to a latest official document available with APP. In 2015, a study completed in cooperation with the USAID (United States Agency for International Development) had confirmed presence of 10,159 trillion cubic feet (TCF) Shale gas and 2,323 billion of stock tank barrels (BSTB) Shale oil in place resources. Read More...
Government stops releasing supplementary grants, MPs told
The government on Tuesday has informed the Senate Standing Committee on Finance and Revenue that it has stopped the release of the supplementary grants, which are only approved in emergency situations. The Senate Standing Committee on Finance and Revenue, which met under the chair of Senator Farooq H Naik, has discussed the Constitution (Amendment), bill. The bill was introduced by Senator Sherry Rehman in Senate, seeking to amend the Article 84 of the Constitution to require the federal government to get approval of the National Assembly before authorising supplementary and excess grants. Sherry Rehman said that government is misusing the supplementary grants, which should be used in emergency situations. She further said that government should get approval of the supplementary grants from the National Assembly. She demanded that government should amend the Article 84 of the Constitution.Read More...
Iesco bills collection stands at 88.13pc, losses at 8.69pc during FY2018-19
The overall collection of bills by Islamabad Electric Supply Company (IESCO) was 88.13 per cent while the losses were 8.69 per cent during 2018-19. Giving a clarification regarding the figure pertaining to transmission & distribution losses and less recovery by NEPRA performance report of Discos and KE for 2018-19, a spokesman of Islamabad Electric Supply Company (IESCO) said that the company does not agree with the figures given in the report regarding IESCO performance carried by a section of press. It is worth to mention here that NEPRA performance report 2018-19 has said that DISCOs including QESCO, SEPCO and HESCO, PESCO and IESCO have failed to achieve full recoveries in FY 2018-19. According the report, IESCO recoveries were 88 per cent. Read More...
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