Morning Market Brief 20th Oct. 2021

Technical Overview

The Benchmark KSE100 had faced rejection from a resistant trend line on hourly chart during last trading session but still succeeds in maintaining above its major supportive region of 44,500pts at day end. As of now it's expected that index would continue its bullish journey after a dip therefore it's recommended to stay on long side and keep buying on dip with strict stop loss of 44,330pts. Currently hourly momentum indicators have created bearish crossovers which indicates towards a an intraday dip but daily indicators are still in bullish mode therefore it's expected that index would once again try to target its resistant regions and if it would succeed in penetration above 44,980pts on hourly chart then next target would be 45,065pts and 45,200pts where it would face strong resistance from a horizontal resistance. Overall index would remain under pressure on short to medium term basis as long as its trading below 45,780pts therefore it's recommended to adopt choppy trading below that level. in case of rejection from its resistant regions index would try to establish ground above 44,330pts but breakout below this region would call for 43,930pts which would be negative sign for bulls and index would start losing strength.

Regional Markets

New Zealand's daily COVID-19 cases fall, some classrooms to reopen

Daily COVID-19 cases in New Zealand fell on Wednesday after a record jump the day before, with most infections still in Auckland as the Delta variant of the coronavirus continues to affect the country's biggest city.Authorities reported 60 new COVID-19 infections on Tuesday, of which 56 were in Auckland, taking the total number of cases in the current outbreak to 2,158. There have been 28 deaths in total since the pandemic began and 43 people are currently hospitalised because of the virus.Read More...

Business News

PM to announce targeted subsidy programme in next few days

Federal Minister for Planning Asad Umar has said that to provide relief to the poor segment of the society the government is launching a targeted subsidy programme and the Prime Minister will announce it in the next few days. The federal minister also announced that the prices of edible oil will be reduced by Rs 45 to 50 per Kilogram in the coming days as the government has decided to slash the GST and Custom Duty on the edible oil by 50 percent. While addressing a press conference here Monday, the Federal Minister for Planning, Development and Special Initiative, Asad Umar said that the GST on edible oil is being reduced from 17pc to 8.5pc, while Custom duty is being reduced from the existing Rs 10000 per ton to Rs 5000 per ton.Read More...

President Arif Alvi urges Japanese investors to take benefit from business opportunities in Pakistan

President Dr Arif Alvi has offered Japanese investors to take benefit of tremendous business opportunities in diverse sectors in Pakistan. Talking to the outgoing Ambassador of Japan Kuninori Matsuda in Islamabad, he underscored the need for increasing cooperation in the fields of skills and human resource development. He also appreciated the role of the Japan International Cooperation Agency and Japanese companies that contributed to the development of Pakistan.Read More...

Tarin says reports of govt's talks with IMF having failed 'totally wrong'

Adviser to Prime Minister on Finance and Revenue Shaukat Tarin has denied that talks between Pakistan and the International Monetary Fund (IMF) for the resumption of $6 billion Extended Fund Facility (EFF) have failed, clarifying that negotiations were, in fact, headed in a "positive direction".“The talks are continuing,” Tarin told reporters after addressing members of the Pakistani community at the consulate general in New York on Sunday night.Read More...

Revival of international orders boosts Pakistan's non-textile exports

Pakistan’s non-textile exports grew 23.4 per cent year-on-year to $2.48 billion in the first quarter of current fiscal year owing to partial revival of international orders and the government’s support schemes.Overall growth in the non-textile sector is mainly led by the value-added sectors. The non-textile sector has yet to receive full orders to pre-Covid levels, data compiled by the Pakistan Bureau of Statistics (PBS) showed.In FY21, three sectors — leather garments, surgical instruments and engineering goods.Read More...