Morning Market Brief 21st Oct. 2020

The Benchmark KSE100 index have succeeded in setting its direction towards bullish side once again by closing above 40,760pts during last trading session because daily momentum indicators also have started a new bullish journey and if index would succeed in closing above 41,200pts-41,300pts region on daily chart then this sentiment would start getting strength. Mean while chances of a bullish engulfing would start looming once index would gave a breakout above this region. While on flip side in case of rejection from its resistant regions index would try to find ground at 40,600pts and 40,000pts in coming days. It's recommended to post trailing stop loss on existing long positions because index is still in uncertain region and it would have a clear bullish direction once it would succeed in closing above 41,300pts. While on short term basis index would enter into expansion mode of its previous 61.8% bullish correction on daily chart once it would succeed in closing above 41,200pts-41,300pts region. Current 61.8% expansion level of previous correction would also try to react as major resistance around 41,300pts region.

Asian shares and U.S. stock futures rose on Wednesday as renewed hopes for a new round of U.S. stimulus drew money into equities from government debt. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.56%. Australian stocks edged up by 0.1%, while shares in China rose 0.07%. Tokyo shares gained 0.4%. U.S. stock futures also rose 0.44%. The yuan surged to the strongest level against the dollar in more than two years on growing optimism about China’s economy and speculation that a victory for U.S. Democrat presidential candidate Joe Biden next month will lead to better Sino-U.S. ties. Benchmark U.S. Treasury yields hit a four-month high and the yield curve steepened on expectations for more U.S. fiscal spending, but some investors remain cautious about the chances of a deal before the U.S. presidential election on Nov. 3.Read More...

Circular debt in the power sector jumped 32% in one year as it went up to Rs2.1 trillion in June 2020 from Rs1.6 trillion in June 2019, according to National Electric Power Regulatory Authority’s (Nepra) State of the Industry Report 2020. Main contributors to the circular debt were higher losses, power theft, inefficiency and low bill recovery from consumers by power distribution companies (DISCOs).Read More...

The sale of cars in the country witnessed an increase of 2.74 per cent during the first quarter of current financial year (2020-21) as compared to the corresponding period of last year. During July-September2020, as many as 31,868 cars were sold against the sale of 31,017 units during last year, showing growth of 2.74 per cent, according to Pakistan Automobile Manufacturing Association (PAMA). Among cars, the sale of Honda cars increased by 65.12 per cent from 3,926 units during last to 6,483 units during current year while Suzuki Swift sale also grew by 20.22 per cent from 524 units to 630 units.Read More...

The exchange rate of Pakistani rupee strengthened by 9 paisas against US dollar in the interbank trading on Tuesday and closed at Rs162.28 against the previous day’s closing of Rs162.37. Meanwhile, according to Forex Association of Pakistan, the buying and selling rates of dollar in open market were recorded at Rs162.5 and Rs163.4 respectively. In interbank trading, the price of euro appreciated by 74 paisas and closed at Rs191.23 against the last day’s trading of Rs 190.46, State Bank of Pakistan reported. Read More...

The government is working to issue bonds in international market to increase its foreign exchange reserves, which had started declining due to heavy loan repayment. After completion of all required formalities, the international capital markets will be tapped during January/February 2021, the ministry of finance said. The ministry had already initiated the process for engagement of Financial Advisors, which is expected to be completed by mid-November 2020. After completion of all required formalities, the international capital markets will be tapped during January/February 2021. Read More...