Morning Market Brief 17th Nov. 2020

The Benchmark KSE100 index is being caged in a triangle on daily chart which is becoming narrowed with every passing day, mean while strong resistant regions are trying to cap index before resistant trend line of this triangle. Index have faced rejection from its initial resistance of 40,800pts which falls on 38% correction of its last bearish rally on hourly chart. As of now it's expected that index would once again try to retest its resistant regions therefore buying on dip could be beneficial. Currently index have major supportive region at 40,200pts while breakout below that region would call for 39,760pts, therefore buying on initial supportive region could be beneficial with strict stop loss of 39,760pts. While in case of reversal index would face initial resistance at 40,800pts and breakout above this region would call for 41,000pts and 41,200pts. Index would be considered range bound until it would not succeed either in closing above 41,500pts or below 39,700pts. While breakout of either side of these regions would push index for further 1,000-1,100pts in respective direction.

Asian stocks cautiously pushed further into record territory on Tuesday, and oil edged higher after U.S. benchmarks were pepped up by news of another promising coronavirus vaccine.MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.11% on Tuesday morning, a day after hitting its highest level since launching in 1987. The MSCI World Index of global shares which also hit a record high on Monday, ticked higher still in Asia’s morning trading. “Investors are looking further ahead in the pandemic development into 2021, instead of focusing on the very challenging outbreak that’s taking place in the U.S. and Europe now,” said Tai Hui, chief Asia market strategist, J.P. Morgan Asset Management, in emailed comments.Read More...

The Economic Coordination Committee (ECC) of the Cabinet on Monday has decided to approve to lay off 3,500 employees of Pakistan International Airlines (PIA) under the voluntary separation. Advisor to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Sheikh chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet at Cabinet Division. A summary was presented by the PIACL and Aviation Division before ECC regarding GOP cash support for the Voluntary Separation Scheme (VSS). After thorough discussion, it was decided to approve, in principle, the voluntary separation from service scheme for PIA.Read More...

Chief Commissioner Inland Revenue Ahmad Shuja Khan has said that tax return forms were now available in national and all regional languages. He was speaking at an interactive session at Lahore Chamber of Commerce & Industry on Monday. LCCI President Mian Tariq Misbah, Senior Vice President Nasir Hameed Khan, Vice President Tahir Manzoor Ch, SAARC Chamber President Iftikhar Ali Malik, Humaira Maryam and Executive Committee members were also present. The Chief Commissioner promised to extend cooperation to Hafeez Centre fire victims. He said “we would not stay behind in this hour of need for our brothers of Hafeez Centre”.Read More...

Objecting the role of Petroleum Division in the amendment of Oil and Gas Regulatory Authority (OGRA) Act, the cabinet division has said that the regulator falls under its administrative control and the Petroleum Division is not competent to undertake the legislation. The Cabinet Division also opposed the proposal of the provinces for the inclusion of provincial representatives in Ogra, saying that under the constitution the provinces can claim representation only in upstream sector but not in the downstream or mid-stream sector, official source told The Nation.Read More...

Growers fear that they are not getting return for even input cost due to lower price of Basmati paddy this season. Growers got good production of basmati rice this year due to increase in cultivation area and extra per acre yield. But availability of carry over stock from the last season has caused exporters to take precautions while purchasing due to less export orders from the EU countries. Paddy (Super), which was opened at Rs 2400 per maund last year, is being traded at Rs 2000-2100 per maund this year. Kainat (1121), which was opened at Rs 2200-2300 per maund last year, is being traded at Rs 1900-2000 per maund this year. Read More...