Morning Market Brief 12th Oct. 2021

Technical Overview

The Benchmark KSE100 index have given bearish breakout of its triangle on hourly chart during last trading session and moved downward for expansion of that triangle. As of now it's expected that index would try to recover after a dip and this dip may establish ground above expansion level of said triangle which falls at 43,475pts. It's recommended to stay cautious as hourly momentum indicators seems ready for a pullback but daily and weekly indicators are still in bearish mode therefore index may continue its bearish journey after retesting its previous supportive regions as resistant ones. Currently index would remain bearish as long as its trading below 44,500pts therefore it can be said that any pull back till that level would be considered as a correction of current bearish rally. On bullish side index would face initial resistance between 43,950pts-44,065pts while breakout above this region would call for 44,300pts. It's recommended to adopt swing trading during current trading session because if index would not succeed in penetration above 44,065pts then it would extend its low towards 43,350pts and 42,850pts in coming days.

Regional Markets

Asia shares fall as global energy crunch fuels inflation worries

Asian shares dropped and the safe-haven dollar held firm on Tuesday, as a global energy crunch fuelled inflation fears, clouding investor sentiment before the U.S. corporate earnings season.MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.9% in early trade, after U.S. stocks ended the previous session with mild losses. U.S. stock futures, the S&P 500 e-minis , fell 0.43%.Australian shares slipped 0.29% while Japan's Nikkei stock index slid 1.03%.China's blue-chip CSI300 index was 0.75% lower, while the Hong Kong's Hang Seng index opened down 1.35%.Read More...

Business News

Nepra imposes Rs26m as fine on Hesco for transformer blast

NEPRA on Monday fined Hyderabad Electric Supply Company (HESCO) Rs26 million on account of transformer blast in which 10 persons died and around 12 persons were injured.The authority has also directed HESCO to compensate the families of the deceased from the general public Rs3.5 million, said a decision issued here by NEPRA.As per the details, NEPRA upon receipt of reports of the transformer blast at Latifabad, Hyderabad had constituted a three member investigation committee under Section 27A of NEPRA Act 1997. The committee investigated the matter in detail by visiting the site of incident.Read More...

ECC fails to garner support for draft textile policy 2020-25

The Economic Coordination Committee (ECC) of the cabinet failed to muster support for the much-awaited draft Textile and Apparel Policy 2020-25 and constituted a sub-committee to resolve the issues before its next meeting.The ECC meeting chaired by Finance Minister Shaukat Tarin once again failed to get commitments on an uninterrupted supply of subsidised gas and electricity to the value-added textile sector from the country.The sub-committee – comprising representatives of Ministry of Commerce.Read More...

SBP eases terms for renewable energy financing

The State Bank of Pakistan (SBP) has allowed all Renewable Energy Investment Entities (RE-IEs) to avail financing on easy conditions to remove growing electricity shortage in the country.The SBP on Monday said that to promote investment in RE solutions by companies, the central bank has eased the conditions for renewable energy solution providers under its Refinance Scheme for Renewable Energy.With the aim of helping address the challenges of energy shortages and climate change, the central bank revised its Financing Scheme for Renewable Energy in July 2019.Read More...

PLL gets no bid for eight LNG cargoes for winter

Amid unprecedented skyrocketing global LNG prices, no bidder responded to Pakistan LNG Ltd (PLL)’s tender for eight cargo deliveries in peak winter — four each in December and January — leaving a shortfall of about 400 million cubic feet each month.This puts the government in a politically delicate situation as to how to ensure sufficient gas pressures in the pipeline or convince residential consumers to increasingly use electricity for water and space heating in peak winter months to minimise crisis situation.Read More...