Morning Market Brief 26th Oct. 2020

The Benchmark KSE100 index is caged in a very tight range and had faced rejection from 74.6% correction level of its last bearish rally during last two trading session. As of now it's expected that index would take a dip initially and if it would succeed in finding ground above 41,000pts then a sharp recovery would be witnessed till day end therefore buying on dip with strict stop loss of 40,760pts is recommended for day trading. Mean while in case index would succeed in sliding below 41,000pts on daily chart then more aggressive pressure would be witnessed on index. On flip side index would face initial resistance at 41,350pts and breakout above this region would call for 41,500pts-41,650pts region. Daily momentum indicators are losing strength but weekly bullish engulfing pattern along with bullish crossovers of weekly momentum indicators would try to pump some fresh volumes.

Asian shares got off to a subdued start on Monday as surging coronavirus cases in Europe and the United states threatened the global outlook, while China’s leaders meet to ponder the future of the economic giant. The United States has seen its highest ever number of new COVID-19 cases in the past two days, while France also set unwanted case records and Spain announced a state of emergency. That combined with no clear progress on a U.S. stimulus package to pull S&P 500 futures down 0.5% ESc1. EUROSTOXX 50 futures STXEc1 eased 0.4% and FTSE futures FFIc1 0.3%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS went flat, still short of its recent 31-month peak. Japan's Nikkei .N225 dithered either side of steady, and South Korea's main index lost 0.3% .KS11. Chinese blue chips .CSI300 shed 1.1% as the country's leaders met to chart the nation's economic course for 2021-2025, balancing growth with reforms amid an uncertain global outlook and deepening tensions with the United States.Read More...

Pakistan earned $ 286 million by providing different information technology (IT) services in various countries during the first two months of fiscal year 2020-21. This shows growth of 35.58 per cent when compared to $210.940 million earned through provision of services during the corresponding period of last fiscal year 2019-20, Pakistan Bureau of Statistics (PBS) reported. During the period under review, the computer services grew by 37.27 per cent as it surged from $162.300 million last year to $222.790 million during July-August (2020-21).Read More...

The government’s point man on the Financial Action Task Force (FATF), Hammad Azhar, said on Sunday that Pakistan was focusing on implementation of all recently-enacted laws to come out of the grey list of the global money laundering and terrorist financing watchdog. Mr Azhar, who is federal minister for industries and production, also said that parliament had passed the laws not only for the last week’s evaluation in the FATF’s three-day plenary, but also for the next year’s evaluation. He observed that one of the two actions plans given to Pakistan by the FATF was the “most challenging” and “comprehensive ever given to any country”.Read More...

The Auditor General of Pakistan (AGP) has found fault with the utilisation of almost Rs3 trillion public funds by the power division, involving huge irregularities, mismanagement, misappropriation and embezzlement. In its report for the audit year 2019-20 that has been laid before the National Assembly after a delay of almost eight months, the AGP also put question marks over sustainability of the power sector under the current state of affairs, governance shortcomings and weak financial and administrative controls. The audit is based on financial accounts for fiscal year 2018-19 – the first year under the Pakistan Tehreek-i-Insaf government.Read More...