Morning Market Brief 30th Nov. 2020

The Benchmark KSE100 index is trying to format a bullish price channel on hourly chart but it had faced rejection from resistant trend line of its triangle on hourly chart during last trading session and for current trading session same region would try to react as major resistant region, therefore it's recommended to stay cautious. As of now it's expected that index would remain volatile during current trading session and swing trading between 40,500pts to 41,200pts could be beneficial. Initially index would remain under pressure but later on it would try to retest its resistant regions at 41,000pts and breakout above this region would call for 41,150pts-41,200pts region. While in case of bearish pressure index would try to find support from a strong horizontal supportive region at 40,500pts while breakout below that region would face some panic selling which may lead index towards 40,200pts. Daily momentum indicators are in bullish mode but hourly indicators have changed their direction towards bearish side and these would try to push index for an intraday dip which may be recovered before day end.

World shares paused to assess a record-busting month on Monday as the prospect of a vaccine-driven economic recovery next year and yet more free money from central banks eclipsed concerns about the coronavirus pandemic in the near-term. Many European bourses are boasting their best month ever with France up 21% and Italy almost 26%. The MSCI measure of world stocks is up 13% for November so far, while the S&P 500 has climbed 11% to all-time peaks. Early Monday, MSCI’s broadest index of Asia-Pacific shares outside Japan held steady, to be up more than 11% for the month in its best performance since late 2011. Japan’s Nikkei firmed 0.1%, bringing its gains for the month to 16% for the largest rise since 1994.Read More...

-Pakistan borrowed $3.18 billion from external sources during first four months (July to October) of the current fiscal year to maintain its foreign exchange reserves. The borrowing from external sources remained lower due to the Covid-19, which had slowed down the pace of the development projects in the country. The borrowing in four months is only 26 percent of the total budgeted external loans of $12.233 billion for the entire fiscal year. In the month of October, the government had borrowed $327.79 million external inflows from multiple financing sources including $231.66 million from foreign commercial banks, according to the official of ministry of Economic Affairs.Read More...

Pakistan Industrial and Traders Association Front (PIAF) has asked government to drop the policy rate and termed it essential to make Pakistani export sector as well as the local industry competitive, as the interest rates in regional are still lower than Pakistan. In a joint statement PIAF Chairman Mian Nauman Kabir and Vice Chairman Javed Siddiqi said that after the corona devastation, Pakistan should take advantage of those export orders cancelled by the other regional countries. For this, the government will have to reduce production cost of the industries to avail this offer by the international buyers.Read More...

The exports of sports goods from the country witnessed decrease of 14.29 per cent during the first four months of the ongoing financial year (2020-21) against the exports of corresponding period of last year. The country exported sports goods worth $87.069 m during July-October (2020-21) against the exports of $101.590 m during July-October (2019-20), showing negative growth of 14.29 per cent, according to the latest data released by Pakistan Bureau of Statistics (PBS) here on Wednesday. During the period under review, the export of footballs decreased by 25.44 per cent from $57.383 m last year to $42.782 m during current year while the exports of gloves also declined by 16.36 per cent from $27.692 m to $23.161 million. However, the exports of all other sports good witnessed an increase of 27.92 per cent by going up from $16.515 m to $ 21.126 m during the period under review.Read More...

Pakistan Ambassador to China Moin-ul-Haque has urged the business and investment community of China and ASEAN countries to tap into the vast and virgin market of Pakistan, particularly with regard to the several Special Economic Zones (SEZs) being set up under the transformative China Pakistan Economic Corridor (CPEC). In this regard, he highlighted Pakistan’s special relations and comprehensive strategic partnership with China and the deep-rooted and wide-ranging links with ASEAN countries. He made these remarks in his welcoming address during the Trade and Investment Promotion Conference, organized by Pakistan Mission in Nanning, the capital city of Guangxi-Zhuang Autonomous Region of China on the sidelines of the ongoing 17th China-ASEAN Expo (CAEXPO). Read More...