Morning Market Brief 4th Aug. 2020

The Benchmark KSE100 index have continued its bullish rally on first day of the week and achieved another milestone by closing above 39,500pts. As of now it seems that index have opened doors towards 40,500pts initially and if it would succeed in closing above that region then this rally could extend its self towards 40,800 and 41,300pts. It's time to start profit taking and stay side line until index succeeds in closing above 42,000pts. Therefore it's recommended to avoid initiating new long positions until index succeeds in closing above 40,500pts. While on flip side index would try to find some ground at 39,500pts and 39,200pts in case of bearish pressure and it would remain bullish until a daily closing occurred below 39,200pts.

Asian shares rose on Tuesday after strong U.S. manufacturing data and gains in tech stocks helped investors look past broader worries about the coronavirus and global economy. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.9%, while shares in China .CSI300 nudged up 0.1%. Australian stocks gained 2% for the biggest intraday gain since July 21. Tokyo shares .N225 also jumped by more than 1%. Oil futures gave up their overnight gains and fell in Asia due to nagging worries about an increase in the supply of crude. U.S. stock futures ESc1 were 0.02% higher in Asia.Read More...

Pakistan’s inflation rate touched 9.30 percent in July, which is highest since March 2020, mainly due to increase in fuel and vegetables prices. The country’s overall inflation reached 9.30 per cent year-on-year in July, increasing from 8.59 percent in June, according to the latest data of Pakistan Bureau of Statistics (PBS). This is the highest inflation rate since March 2020. In March 2020, the inflation rate was 10.20 percent but it declined in the subsequent months and had touched 8.59 during June. Once again it has increased to 9.30 during the month of July. However, the inflation rate in July 2020 is still less than July 2019 when it was recorded at 10.34 percent. Inflation increased by 2.5 percent in July 2020 on month-on-month basis, as compared to increase of 0.82 percent in the previous month.Read More...

The Chinese government will provide around 38 more agricultural drones to Pakistan in a few months to fight desert locust. The Chinese Ministry of Agriculture and Rural Affairs had donated the drones for prevention of desert locust to the Ministry of National Food Security and Research of Pakistan last month. According to a report of the China Economic Net (CEN) on Monday, earlier in June, a leading Chinese company expressed willingness to set up an industrial unit in Pakistan to manufacture drones that can be used to protect crops and control locust.Read More...

Pakistan Telecommunication Authority (PTA) has decided to further extend the VPN registration deadline for a period of two months till September 30, 2020 to facilitate businessmen and the general public for registration of Virtual Private Networks (VPNs). This action has been taken in light of recommendations by the Ministry of Information Technology and Telecommunication (MoITT), Pakistan Software Export Board (PSEB) and Pakistan Software Houses Association for IT and ITeS (P@SHA), according to a statement issued by PTA here on Monday. Read More...

The World Bank (WB) on Monday announced appointment of Najy Benhassine as new country director for Pakistan. “Mr Najy Benhassine is the World Bank’s new country director for Pakistan effective August 1,” said WB press statement issued here. He succeeds Illango Patchamuthu, who completed his term on July 31. Benhassine most recently served as Regional Director for Equitable Growth, Finance and Institutions in the Middle East and North Africa.Read More...