Morning Market Brief 13th Aug. 2020

The Benchmark KSE100 index have witnessed a volatile trading session yesterday due to its bearish momentum indicators on hourly chart. As of now index is about to complete its 61.8% correction of its last bullish rally and this correction region falls on a strong horizontal supportive region at 40,320pts. Therefore it's recommended to stay cautious and adopt buying on dip with strict stop loss for day trading. It's expected that index would try to take a spike to retest its resistant regions at 40,860pts and 41,000pts while breakout above 41,000pts would call for 41,200pts and 41,500pts in coming days. While on flip side if index would not succeed in maintaining above 40,320pts then an intraday dip would be witnessed towards 40,034pts. Index is caged in a very tight range and it would remain bullish on short term basis until its trading above 39,500pts while breakout below that region would call for a further dip of 1000-1500pts while on the other side 41,700pts would try to cap bullish sentiment.

Asia’s stock markets followed Wall Street higher on Thursday, as investors returned to tech stocks, gold and selling dollars after steady virus figures and a surprising jump in U.S. inflation boosted sentiment.MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.2%, and gains in semiconductor makers drove Japan's Nikkei .N225 1.9% higher to a six-month peak. The rises come after a tech rally left the S&P 500 .SPX within a whisker of a record closing high overnight, in a climate where even bad news is regarded as good news if it increases the chances of more stimulus to aid recovery. [.N] “We’d seen value outperforming over the last few days, but that was unwound last night,” said Chris Weston, head of research at Melbourne brokerage Pepperstone, pointing to a drop in U.S real yields as inflation expectations rose.Read More...

The production of farm tractors in the country witnessed an increase of 18 percent to 3,317 units during the first month of current financial year 2020-21, against the production of 2,811 units in same month of last year. During the month under review, the production of trucks witnessed a declining trend as it went down to 245 units during July 2020 as compared to 347 units during July 2019, showing decrease of 29.39 percent, latest data of Pakistan Automobile Manufacturing Association (PAMA) revealed. Similarly, the output of buses plunged to 49 units during the month under review from 61 units, showing decrease of 19.67 percent. Production of pickups also decreased by 33.26 percent to 1,312 units from 1,966 units during same month of last year whereas 385 units of LCVs, vans, and jeeps were manufactured during July 2020 in the country compared to 507 units during the same months last year, thus showing a decrease of 24.06 percent. Read More...

Islamabad-Pakistan has requested Kingdom of Saudi Arabia to extend the oil facility on deferred payment after the one year agreement between both the countries for provision of $3.2 billion worth of oil expired. “We have requested Saudi Arabia for the extension in the oil facility on deferred payment but I can’t say when it will get renewed,” the Special Advisor to Prime Minister on Petroleum Nadeem Babar said while addressing a joint press conference along with the Federal Minister for Energy Omer Ayub, Federal Minister for science and technology Fawad Chaudhry, SAPM on Power Shahzad Qasim and Secretary Power Omer Rasul. The Federal Ministers and SAPMs were briefing media regarding the salient features of Alternative Energy Policy-2019. InRead More...

Adviser to Prime Minister on Finance and Revenue Abdul Hafeez Sheikh has announced to slash the interest rate by 50 percent on loans under Kamyab Jawan programme and also increased the loan limit from Rs5 million to Rs25 million. He said that government is providing loans under Kamyab Jawan programme. In a press conference along with Special Assistant to Prime Minister on Youth Affairs Usman Dar, the adviser said that government has decided to reduce the interest from 8 and 6 percent to 4 and 3 percent respectively. He said that government had disbursed Rs1 billion to 2900 people so far. He said that government has approved to provide loans to another 7500 people. In this regard, the number of banks has also been increased from three to 21.Read More...

Pakistan spent $3017.222 million by acquiring different transport services from various countries during the eleven months of fiscal year (2019-20) as compared to the corresponding period of last year. This shows decrease of 9.15 per cent as compared to $3321.109 million spent through provision of services during the corresponding period of fiscal year (2018-19), Pakistan Bureau of Statistics (PBS) reported. During the period under review, the imports of sea transport services declined by 7.73 per cent, by going down from $1850.126 million during last year to $1707.110 million during fiscal year under review. Among the sea transport services, the imports of freight services witnessed decrease of 8.75 per cent by declining from $1653.376 million to $1508.780 million whereas the imports of other sea transport services witnessed nominal increase of 0.80 per cent from $196.750 million to $198.330 million. Read More...