Morning Market Brief 29th Oct. 2020
Technical Overview
The Benchmark KSE100 index have continued its bearish journey for confirmation of its bearish dark could on daily chart during last trading session. Mean while index have moved downward after completing its intraday correction and expansion on hourly charts. As of now it's expected that index would try to find some ground at 41,000pts from where an intraday spike could be witnessed but bearish breakout of 41,000pts would call for a short term trend change and index would start moving towards its short term correction levels. For day trading either selling on strength or selling below 41,000pts could be beneficial with strict stop loss. A rising trend line would try to support index along with strong supportive region around 41,000pts and breakout below this region would call for 40,700pts and 40,500pts. While on flip side in case of reversal index would face initial resistance at 41,300pts which would be followed by 41,500pts and 41,800pts. Daily momentum indicators have changed their directions towards bearish side and today's closing below 41,000pts would confirm reversal on short term basis. A second consecutive hammer on monthly chart is taking place which is indication of uncertainty therefore it's recommended to stay cautious during the next week.
Regional Markets
Asia's COVID control tempers global stock selloff, U.S. futures jump
Asian stock markets fell on Thursday but not as sharply as Wall Street’s rout overnight, while oil bounced off lows and U.S. futures jumped, as Asia’s brighter economic outlook offset investor worries about fresh COVID-19 lockdowns in Europe. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1%. Japan's Nikkei .N225 fell 0.8% and drops in Hong Kong .HSI, Sydney .AXJO, Shanghai .SSEC and Seoul .KS11 were smaller than 1.5%. That is heavy but much less than the S&P 500 index's 3.5% drop .SPX or the 4.2% fall by Germany's DAX .GDAXI which led European shares to their lowest level since late May. S&P 500 futures ESc1 and Dow futures YMc1 rebounded 1%, which traders attributed to heightened volatility and to the less gloomy mood around Asia as China's economy builds up steam.Read More...
Business News
Ogra has no say in determination of oil, LPG prices
Instead of playing a vigorous regulator’s role, Ogra is just performing function of calculating body or a rubber stamp while determining the prices of petroleum products and LPG. Oil and Gas Regulatory Authority has just no say in the determination of Oil and LPG prices, official sources said. According Ogra ordinance 2002, the regulator has to “protect the interests of all stakeholders including the consumers and the licensees in accordance with the provisions of this Ordinance and the rules,” Read More...
Outstanding dues of IPPs against govt reach Rs1,000 billion
The Standing Committee on Power was Wednesday informed that the outstanding dues of the IPPs against the government have reached Rs 1000 billion while annually electricity worth Rs 35 billion is being stolen. The Standing Committee on Power expressed serious reservations on the NEPRA amendment Bill and said that by imposing surcharges the Power Division is trying to find an easy way out to pay circular debt. Read More...
Approval granted for renewal of contract for purchase of 104MW electricity
The Economic Coordination Committee (ECC) of the Cabinet on Wednesday has granted approval for the renewal of the contract with Tavanir Iran for the purchase of 104MW of electricity subject to vetting by the Ministry of Law & Justice. The ECC has decided that the contract, if approved by the Ministry of Law and Justice will be valid till 31st December 2021. Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet here at the Cabinet Division.Read More...
Businesses need govt support to come out of crisis
Businesses are in dire need of government support to come out of crisis because by COVID-19, said Lahore Chamber of Commerce and Industry (LCCI) President Mian Tariq Misbah while talking to a delegation of Katarband Road Industrial Association here Wednesday. President of the Association Syed Mehmood Ghaznavi led the delegation comprising Mian Muhammad Nawaz, Tahir Anjum, Chaudhry Yousaf, Arshad Kamal, Chaudhry Wajid and Waseem Sarwar. LCCI president said, “Look at America, Europe or Middle East, the business scenario is not as good as it should be. They are striving to come out of Corona influence but it seems that it would take a few more months.”Read More...
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