Morning Market Brief 31st Aug . 2021

Technical Overview

The Benchmark KSE100 index had bounced back after getting support from its strong supportive region during last two trading sessions, as of now it's taking correction of its last bearish rally and already have completed 50% correction of said rally therefore it's expected that a volatile session could be witnessed during current trading session therefore it's recommended to adopt swing trading strategy during current trading session. Currently index would face initial resistance at 47,680pts which would be followed by 47,760pts and 47,900pts. While on flip side index would try to establish ground above 47,065pts where a horizontal supportive region would try to pump some fresh volumes but breakout below this region would call for 46,900pts. Overall index would remain range bound until it would not either succeed in closing above 48,300pts or below 46,900pts, breakout of either side would call for a rally of 1,000-1,500pts in respective direction.

Regional Markets

Asia shares ease as weak China data weighs

Asia stock markets opened lower on Tuesday despite fresh all-time highs on Wall Street, as worries about China's slowing economic growth and regulatory changes weighed on investor sentiment. MSCI's gauge of Asia Pacific stocks outside Japan slipped 0.25%, while Japan's Nikkei 225 fell more than 0.3% in the morning session. Japan's industrial output shrank in July as car production took a hit from a resurgence of the coronavirus in Asia that has cast doubt over recovery in the world's third-largest economy.Read More...

Business News

Tarbela dam to achieve its peak level of 1550 feet within next 48 hours

The country’s major water reservoir Tarbela dam is likely to achieve its peak level of 1550 feet within next 48 hours, while there is no chance of filling of Mangla reservoir to its maximum level during current season. Tarbela is currently at 1547.68 feet and if the current flows continue it will reach its peak level by September 1st or 2nd , official of the Indus River System Authority (IRSA) told The Nation. Tarbela attaining its peak level would mean that the country will have enough water for the upcoming Rabi season starting from October 1st. However, the official said that Mangla dam will not fill to its peak level of 1242 feet during current season. Mangla dam level is currently more than 42 feet short of the peak level.Read More...

Govt debt up by 22pc to Rs38.7tr in two years

The central government’s total debt has increased by 21.7 per cent to Rs38.7 trillion during the last two years with a major rise in domestic debt. The data released by the State Bank of Pakistan (SBP) on Monday showed that during the past couple of years, the government’s domestic and external debts stood at Rs38.69tr at the end of the fiscal FY21 compared to Rs31.78tr in FY19. The debts in FY20 were Rs35.1tr. The external debt (in terms of rupees) did not show much difference as it rose to Rs12.42tr compared to Rs11.055tr in FY19. However, the government’s external debt did not include loans from the International Monetary Fund and foreign exchange liabilities.Read More...

FBR ends law controversy by allowing tax waivers on foreign remittances

In a major move to facilitate overseas Pakistanis, the Federal Board of Revenue (FBR) on Monday dropped all its departmental appeals immediately filed over the last over seven years on the interpretation of law pertaining to availing of exemptions on foreign remittances. The controversy erupted when the FBR’s Inland Revenue Service field formations refused concessions in some situation on foreign remittances sent via Money Services Business (MCBs), Money Transfer Operations (MTOs) and Exchange Companies (ECs)—like Money Gram, Western Union and Ria France etc. After this decision, overseas Pakistanis now can avail tax benefit on foreign remittances sent through MTOs, ECs and MCBs besides scheduled banks.Read More...

Leaded petrol runs out of gas, century after first warnings

The use of leaded petrol has been eradicated from the globe, a milestone that will prevent more than 1.2 million premature deaths and save world economies over $2.4 trillion annually, the UN Environment Programme (UNEP) said on Monday. Nearly a century after doctors first issued warnings about the toxic effects of leaded petrol, Algeria — the last country to use the fuel — exhausted its supplies last month, UNEP said, calling the news a landmark win in the fight for cleaner air. “The successful enforcement of the ban on leaded petrol is a huge milestone for global health and our environment,” said Inger Andersen, executive director of UNEP, which is headquartered in Nairobi.Read More...