Morning Market Brief 10th Nov. 2021

Technical Overview

The Benchmark KSE100 had continued its bearish journey after facing rejection from a resistant trend line during last two trading sessions and closed below its initial supportive region of 46,500pts during last trading session. As of now it's expected that index would try to target 46,000pts where it's being supported by a horizontal supportive region. Initially it would try to establish ground above 46,200pts but breakout below this region would call for 46,000pts and 45,900pts. Overall sentiment would remain mixed as long as index is trading above 45,900pts and breakout below this region would call for 45,500pts and market sentiment would change from range bound to bearish. While on flip side in case of reversal index would initially face slight resistance at 46,500pts and breakout above this region would call for 46,900pts. Currently Daily momentum indicators have changed their direction towards bearish side which indicates that index may start sliding towards a crash if it would succeed in closing below 45,900pts therefore it's recommended to stay cautious with existing long positions.

Regional Markets

Stocks stalled as oil fuels inflation nerves

Asian stockmarkets were becalmed on Wednesday as surges in oil and Chinese factory prices added to worries that a hot U.S. inflation reading could renew pressure on policymakers to lift interest rates.U.S. crude futures rose 1% to a two-week high of $84.97 a barrel in early trade and Brent futures made a one-week top of $85.35.Factory gate prices in China have soared 13.5% year-on-year to October, data showed, beating forecasts and warning of pressure heading down supply chains to global consumers.MSCI's broadest index of Asia-Pacific shares outside Japan and Japan's Nikkei each dropped 0.2% in and Overnight on Wall Street a long rally paused, with the Nasdaq logging its first fall in a dozen sessions.Read More...

Business News

Nepra allows hike of Rs2.52 per unit in electricity tariff

The National Electric Power Regulatory Authority (NEPRA) has Tuesday allowed an increase of Rs 2.5272 per unit in power tariff on account of fuel charge adjustments for the month of September.Last month, NEPRA had conducted public hearing on the Central Power Purchasing Agency Guarantee Limited’s (CPPA-G) petition for an increase of Rs 2.66 per unit in power tariff on account of FCA for September 2021.The regulator had noted that an additional burden of Rs 2.07 billion occurred due to violation of merit order. In a petition submitted to NEPRA on the behalf of power distribution companies (Discos), CPPA-G said that for the month of September.Read More...

US consul general calls on Wapda chairman

The US Consul General in Lahore William K. Makaneole accompanied by the USAID Director, Office of Energy Jenna Diallo called on WAPDA Chairman Lt Gen Muzammil Hussain (Retd) at WAPDA House today. The matters of mutual interest relating to water and hydropower projects were discussed during the meeting. The chairman apprised the consul general of the 10 projects including Diamer Basha Dam, Mohmand Dam and Dasu WAPDA has been constructing to add more than 11 MAF of water to the existing water storage capacity and inject 9000 MW of environment-friendly and low-cost hydel electricity to the national grid.Read More...

CDA ready to set up new industrial estate in collaboration with ICCI

Chairman Capital Development Authority (CDA), Amir Ali Ahmed Tuesday said that the demand of Islamabad Chamber of Commerce and Industry (ICCI) for setting up a new industrial estate in Islamabad was quite legitimate and assured that CDA was ready to complete this important project in collaboration with ICCI.He said this while addressing the delegation of ICCI, led by President Muhammad Shakeel Munir, which visited CDA Head Office and met with Chairman CDA Amir Ali Ahmed to discuss key issues of business community, said a press release issued here.Read More...

Fiscal deficit drops to 0.8pc of GDP in first quarter

Pakistan’s overall fiscal deficit in the first quarter (July-September) of the current fiscal year dropped to 0.8 per cent of Gross Domestic Product (GDP) or Rs438.5 billion, which is one of the lowest in the comparable period of last four years of the current government.According to Fiscal Operations Data released by the Ministry of Finance, the total revenue in first quarter stood at 3.4pc of GDP that was better than 3.2pc of same period last year. The total revenue in the first quarter of fiscal year 2019-20 had also amounted at 3.4pc of GDP.Read More...