Morning Market Brief 3rd Sep. 2020

The Benchmark KSE100 index have succeeded in setting its base above 41,000pts during last two trading sessions but it's still moving in caution zone because now it's being capped by a descending trend line on daily and weekly charts therefore it's recommended to stay cautious until index succeeds in closing above this trend line which would try to cap index below 42,160pts. Mean while index have posted new high as compared to previous week but neither hourly nor daily MACD have followed this trend and these both are still moving below their previous levels which is indicating a caution call because if these both would not succeed in amending their previous values then it would be considered a selling on strength call. Therefore daily closing above 42,160pts is becoming mandatory for bullish continuity because if index would start losing strength below this level then daily and hourly MACD would try to drag index into bearish zone and short term trend would change its direction. Initially it's expected that index would face resistances between 42,000pts-42,160pts and breakout above that region would call for 42,500pts while on flipside in case of facing rejection from its resistant regions index would try to find ground above 41,300pts and 41,000pts. Index would remain into bullish zone until it would not succeed in closing below 40,750pts. It's recommended to post trailing stop loss on existing long positions and avoid initiating new short positions until index gave a reversal sign.

Asian equities were set to open higher on Thursday after stronger U.S. economic data and the prospect of additional U.S. stimulus prompted sharp, and broader, gains on Wall Street, while the dollar extended its upward move. Investors in Asia await readings on services activity in China and Japan, which are expected to show continued expansion in China, and possibly a move out of contraction for Japan. Australian S&P/ASX 200 futures rose 0.69% in early trading. Japan’s Nikkei 225 futures added 0.04%. Hong Kong’s Hang Seng index futures lost 0.15%. E-mini futures for the S&P 500 fell 0.10%.Read More...

The Economic Coordination Committee (ECC) of the Cabinet on Wednesday has approved $142 million for meeting the financial requirements of hotel Roosevelt and also increasing tariff for K-electric limited consumers. The ECC, which was chaired by Adviser to the Prime Minister on Finance and Revenue Abdul Hafeez Shaikh, has approved funds for Pakistan International Airlines Corporation Limited (PIACL) owned Roosevelt Hotel in Manhattan, New York. In order to meet the financial challenges faced by Roosevelt Hotel, New York, the ECC approved the amount up to $142 million for PIACL on the recommendation of the Committee constituted in an earlier meeting of the ECC, headed by Deputy Chairman Planning Commission and including Secretaries of Finance Division, Aviation Division and Law and Justice Division.Read More...

Pakistan’s customs has surpassed its monthly tax collection target by Rs1.6 billion in the month of August despite outbreak of Covid-19 that caused problems in collection. Federal Board of Revenue (FBR) on Wednesday stated that outbreak of COVID-19 within country has caused administrative problems in collection of revenue. However, Pakistan Customs has performed tremendously well towards achievement of revenue target of customs duty assigned for the month of August, 2020. The customs duty target for the month of August was Rs.44.3 billion, but an amount of Rs.45.9 billion was collected under the head of customs duty which is 3% more than the assigned target of this month.Read More...

The International Monetary Fund (IMF) has suggested some reforms to the Government of Pakistan for obtaining its revenue targets. Adviser to the Prime Minister on Reforms Dr. Ishrat Hussain, has stated this in National Assembly Standing Committee on Finance and Revenue. He informed the committee about the salient features of Reforms initiatives adopted by the Federal Board of Revenue and its way forward for improvement of taxation system in the country. He said that, He was of the firm view that Automation system and Digitalisation process will minimise the interaction between taxpayers and tax collectors.Read More...

Matsuda Kuninori, Ambassador of Japan, has said that his country is encouraging Japanese investors to look at investments in auto parts sector in Pakistan. Matsuda Kuninori, Ambassador of the Japan, expressed theses views in a meeting with Minister for Planning, Development and Special Initiatives Asad Umar. Matsuda Kuninori called on the Minister for Planning Asad Umar here. Both dignitaries discussed matters related to the bilateral relations, especially new possibilities of economic cooperation in the post COVID-19 situation. The ambassador expressed his desire to further enhance cooperation between the Japan and Pakistan and to help ensure that common objectives are met.Read More...