Morning Market Brief 5th Nov. 2020

The Benchmark KSE100 index have entered into a volatile zone after closing of last trading session because it had faced rejection from its strong resistant region along with its 61.8% correction level on daily chart. As of now it's expected that index would try to take support from 40,200pts-40,000pts region on intraday basis and it could start a spike towards 40,500pts and 40,760pts while breakout above this region would call for 41,000pts therefore buying with strict stop loss of 39,760pts could be beneficial for day trading. While on flip side if index would not succeed in penetration above 40,500pts then it would try to format an evening shooting star on daily chart by closing below 39,800pts which would be more dangerous because an evening shooting star right after a daily bullish engulfing would confirm strength of bears and it would lead index towards completion of daily head and shoulder and would strengthen impact of weekly bearish engulfing pattern therefore it's recommended to trade with strict stop loss and adopting cut & reverse strategy on breakout of 39,800pts in bearish direction would be beneficial. Sentiment would remain bearish until index would not succeed in closing above 41,000pts or 41,200pts and daily closing below 39,800pts would call for a sharp dip towards 39,200pts.

Asian share markets firmed on Thursday while bonds held big gains as investors awaited a clear result from the U.S. election, with the likely prospect of policy gridlock seemingly warmly welcomed by Wall Street overnight. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.5% to reach its highest since March 2018. Japan’s Nikkei rose 0.9% to a nine-month top and South Korea put on 1.5%. E-Mini futures for the S&P 500 firmed 0.3%, adding to sharp overnight gains. “Equity markets have now decided they like the prospect of a ‘do nothing’ President, lacking control of both houses of Congress – in which respect history is on their side,” said Ray Attrill, head of FX Strategy at National Australia Bank. “This view will, though, remain contingent on some sort of COVID-19 related fiscal package being agreed, ideally sooner rather than later.”Read More...

The Economic Coordination Committee (ECC) of the Cabinet on Wednesday has formed a committee of all stakeholders to prepare a proposal on modalities for clearing the circular debt of the Petroleum Division. The ECC, which was chaired by Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh, has formed a committee with all the relevant stakeholders (Finance Division, Power and Petroleum Division, Planning Division, SECP, OGRA, OGDCL, PSO, SNGPL, PPL, GHPL, PLL) to prepare a proposal on modalities for clearing the circular debt of the Petroleum Division.Read More...

The cement sector is posting continuous growth this fiscal, recording highest ever monthly despatches of 5.735 tonnes in October 2020. The local uptake of cement in October 2020 increased by 15.83 percent to 4.859 million tonnes from 4.195 million tonnes in October 2019 while exports registered an increase of 11.58 percent, increasing to 875,266 tonnes from 784,433 tonnes in the same month last year. In the north region, domestic cement despatches increased by 15.53 percent to 4.165 million tonnes during October 2020 from 3.605 million tonnes in October 2019. Exports from the north increased by 8.54 percent to 0.283 million tonnes in October 2020 from 0.261 million tonnes in October 2019.Read More...

Central Development Working Party (CDWP) Wednesday approved four projects worth Rs3.69 billion and agreed for the further consideration of two projects worth Rs33.49 billion including the 2nd revision of Sehat Sahulat Program. Central Development Working Party (CDWP) meeting was chaired by Deputy Chairman Planning Commission Mohammad Jehanzeb Khan. Senior officials from Planning Commission and federal ministries/divisions also participated in the meeting while representatives from provincial governments participated through video conference. Projects related to health, physical planning & housing, education, and mass media were presented in the meeting.Read More...

The Joint Working Group (JWG) on Socio-economic Development under CPEC Framework has decided to prepare documents for signing as deliverables of the forthcoming 10th JCC and also prepare projects for 3rd phase of the corridor. In the first batch of Socio-economic Development under CPEC Framework, currently 17 projects are underway with the Chinese funding of $1 billion and more deliverables are being added for the next CPEC JCC which is likely to be held in the third week of ongoing month, official source said.Read More...