Morning Market Brief 27th Oct. 2020
Technical Overview
The Benchmark KSE100 Index is about to complete 100% expansion of its previous bullish correction around 42,100pts, mean while it's going to face strong resistance below 42,000pts from a descending trend line on hourly and chart and these both elements would push index for a correction of its expansion. Meanwhile daily Stochastic have changed its direction towards bearish side therefore it's recommended to start profit taking from existing long positions and for day trading start selling on strength with strict stop loss of 42,250pts. Index have create a morning star on daily chart at peak but it could convert into a cheat pattern therefore it's recommended to avoid initiating new long positions. In case of reversal index would try to find ground initially at 41,500pts but breakout below that region would create panic among day traders and massive selling volume could be witnessed below that region and that pressure would try to lead index toward 41,200pts and 41,000pts.
Regional Markets
Asian shares struggle to shake off U.S. selloff amid coronavirus comeback
Asian markets look set to continue a downward path on Tuesday after soaring global coronavirus cases and shrinking hopes for a U.S. stimulus deal took a toll on Wall Street and drove up the U.S. dollar. Australia’s ASX 200 opened down about 0.6%, while Japan’s Nikkei 225 futures were up 0.04%. The Nikkei 225 index closed down 0.09% on Monday. The futures contract was down 0.25% from that close. Hong Kong’s Hang Seng index futures were up 0.1%. MSCI’s gauge of stocks across the globe was down 1.52%. U.S. indices fell sharply to open the week’s trading, as anxiety over new record daily COVID-19 cases in the United States, Russia and France weighed on investor appetite.Read More...
Business News
Indicators show positive economic sentiments
Federal Minister for Industries and Production, Hammad Azhar on Monday enumerated a number of indicators that have been showing growth, indicating positive economic sentiments in the country. In a tweet, the federal minister identified rally in the stock market, appreciation of Pak rupee in currency markets and strong growth in industrial sectors like cement, automobiles, construction, fertilizer and textiles, which he said point towards a positive economic sentiment in the country.Read More...
ECC for fixing minimum support price for wheat crop at Rs1600 per 40kg
The Economic Coordination Committee (ECC) of the Cabinet on Monday decided to propose to the federal cabinet to fix the minimum support price (MSP) for wheat crop 2020-2021 at Rs1600 per 40 kg. Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh chaired the meeting of the ECC here at the Cabinet Division. The ECC has decided to propose to the cabinet Rs 1600 as minimum support price (MSP) for wheat crop 2020-2021. It was briefed to the ECC that the support price mechanism plays a pivotal role in boosting wheat production as it stabilizes market and increases profitability of the farmers. Since 2010-2011, MSP for wheat has been revised 4 times.Read More...
PCMEA urges govt to support carpet industry
Pakistan Carpet Manufacturers and Exporters Association (PCMEA) has urged the government to support carpet industry for coming out of crises caused by coronavirus pandemic. Addressing weekly meeting of the association on Monday, PCMEA Senior Vice Chairman Riaz Ahmed urged the government to bear 80 per cent cost of international exhibitions besides providing other facilities to the exhibitors. The participants discussed in detail the overall impact of coronavirus pandemic on carpet industry and put forward many proposals to come out of this crisis.Read More...
Gas price raised by up to Rs88/mmbtu for CNG, power, general, export oriented industries
The government has increased the Gas tariff by up to Rs88 per mmbtu for CNG, power, general industry and export oriented general industry. However, there is no change in prices for domestic consumers, rooti tandoors, commercial and cement industries, said a notification issued by Oil and Gas Regulatory Authority (Ogra) here. The Ogra has notified hike in gas prices CNG, power, general industry and export oriented general industry. The gas prices for the CNG stations in KP, Balochistan and Potohar region (region-I) has been increased by Rs88 per mmbtu. For the CNG stations in Sindh and Punjab (region-II) the gas prices has been increased by Rs67 per mmbtu.Read More...
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