Morning Market Brief 10th jun 2021

Technical Overview

The Benchmark KSE100 index had faced some serious pressure after penetration below its initial supportive region of 48,000pts during last trading session as technical traders started off loading their positions with expectations of an upcoming correction. Current corrective move may continue towards 47,500pts initially during current trading session and breakout below this region would push index further downward till 47,200pts, meanwhile daily momentum indicators have change their direction towards bearish side therefore it's recommended to stay cautious and post trailing stop loss on existing long positions because if index would succeed in sliding below 47,500pts then this current correction would prolong. While on flip side in case of reversal from its supportive regions index would face initial resistance at 48,000pts and breakout above this region would call for 48,150pts and 48,460pts. Overall a volatile session could be witnessed today therefore it's recommended to adopt swing trading with strict stop loss on both sides. On longer run index is moving downward after facing rejection from resistant trend line of its rising wedge on weekly chart therefore breakout below 47,200pts would push it towards supportive trend line of this wedge, meanwhile some healthy volumes would be required for bullish breakout this wedge which would take place above 48,500pts therefore it's recommended to keep an eye on volume figures of heavy weight age shares to design a strategy for short term trading.

Regional Markets

Asian shares hold range as investors eye U.S. CPI

Asian shares edged higher but held their recent trading range on Thursday as investors focussed on U.S. inflation data and the risk of an upside surprise that could prompt the Federal Reserve to start tapering its massive stimulus.MSCI's broadest index of Asia-Pacific shares outside Japan were marginally higher at 700.6 points, but stayed in the 698-712 points range it has traded in since late May.Japan's Nikkei and Australia's benchmark shares rose 0.4% each. Chinese shares gained with the blue-chip index up 0.9% Overnight, fixed income markets were the big movers, with some analysts pointing to a setback to more U.S. stimulus efforts, while others suggested a likely clearing out of short positions ahead of the May CPI.Short positions in Treasuries were the highest since 2018, according to JP Morgan positioning data last week.Read More...

Business News

Govt to increase water storage capacity to 24m acre feet: Minister

style="text-align: justify;">Punjab Irrigation Minister Mohsin Khan Leghari has said that water conservation was collective responsibility as depleting resources have become a biggest threat.Talking to Lahore Chamber of Commerce & Industry President Mian Tariq Misbah and Vice President Tahir Manzoor Chaudhry here Wednesday, he said that the country was facing water scarcity.The minister said that the water table is falling at the rate of 1 meter per year. He said that only way to conserve water is through awareness at the national level. It is important to raise awareness on the level of universities.“We should make our friends, family and people around us more aware about the water shortage challenges”, he said.He said that it is important to build dams. “Due to lack of dams, we are not able to store water. A serious water crisis will occur if we don’t build dams,” he said.The minister said the government has planned to increase the storage capacity of water from to 13 million acre feet to 24 million acre feet.Read More...

Prolonged load shedding refutes govt’s claim of surplus electricity

The claims of generating surplus electricity have once again exposed as major part of the country is facing unannounced prolonged load shedding.Meanwhile taking serious notice of prolonged load shedding across Pakistan, National Electric Power Regulator Authority (Nepra) has summoned the Chiefs of all the Discos and KE.There are reports of outages and power breakdown ranging from 1 to 12 hours across the country. However as per the power division the shortfall was only 1500 MW.National Electric Power Regulator Authority (Nepra) has taken serious notice of excessive load shedding faced by the consumers through-out Pakistan, due to which the public is suffering heavily in the simmering heat, said spokesman Nepra here.Nepra has directed Chief Executive Officers (CEOs) of all power distribution companies (Discos) including KE to appear before it on tomorrow (Friday) to justify the reasons of prolonged power outages. Read More...

Nepra seeks explanation from power firms over loadshedding

As unannounced power cuts continued for the third consecutive day almost across the country, the government on Wednesday confirmed supply shortfalls in the system due to technical reasons despite surplus generation capacity.The National Electric Power Regulatory Authority (Nepra) took serious notice of the excessive loadshedding and sought explanation from power distribution companies (Discos), including K-Electric.Minister for Energy Hammad Azhar, on the other hand, said the shortage was caused by ‘outages’ of some thermal power plants and insufficient supply from Tarbela Dam due to lower water availability.Officials said electricity and gas shortages were anticipated to aggravate in the coming days.Sources in the Power Division said a few thermal plants could not be operated despite peak demand of the year due to gas shortage caused by cancellation of an LNG vessel by Pakistan LNG Limited at the last moment due to higher price and had a bearing of about 150mmcfd (million cubic feet per day) in the system.Read More...

Rs47bn grants okayed with lion’s share going to KP

The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a Rs43 billion grant for Khyber Pakhtunkhwa to cover its cash shortfall, allowed signing of about $1bn worth of debt relief from G20 countries and agreed in principle for a $1.1bn requirement for procurement of vaccination.The meeting of the ECC presided over by Federal Minister for Finance and Revenue Shaukat Tarin also approved more than a dozen supplementary grants worth a total of Rs47bn just two days ahead of federal budget and disallowed a couple of others for being too close to conclusion of fiscal year. The ECC is reported to have also approved a few other grants for civil armed forces which were not made public.An official statement said the ECC approved Rs42.9bn for the Finance Division for ways and means advances availed by the provincial governments.Read More...