Morning Market Brief 11th Dec. 2020

The Benchmark KSE100 index is inching up since last three trading session and overall a volatile situation was witnessed during this week in which index have moved in a seesaw wave. As of now it’s expected that index would face some pressure initially after facing rejection from 42,500pts as hourly momentum indicators are strongly bearish and these would try to push index towards 42,000pts, for current trading session index have supportive regions around 42,000pts and 41,800pts while on flip side it would face initial resistance between 42,500pts-42,600pts and breakout above this region would call for 42,860pts-43,000pts. Index is moving beside resistance trend line of its bullish price channel and a correction is due on hourly and daily chart therefore an intraday dip could be witnessed therefore selling on strength would be beneficial for day trading. On short-term basis index would remain range bound between 41,500pts-43,000pts and sentiment would remain bullish until index would not succeed in sliding below 41,500pts, while today’s closing below 42,500pts would increase uncertainty among investors by formatting a spinning top on weekly chart after a long bullish candle which would open doors for a weekly evening shooting star in next week therefore it’s recommended to avoid initiating new long positions until index would not succeed in closing above 42,800pts on daily or weekly charts. Meanwhile retesting of resistant trend line of its previous triangle is still remaining which would attract investors for new buying on dip therefore a dip in coming days would be considered healthy for market sentiment.

Investors in Asia were set to push stocks lower on Friday as concerns about U.S. stimulus and climbing COVID-19 cases weighed globally on optimism. Investors in Asia were set to push stocks lower on Friday as concerns about U.S. stimulus and climbing COVID-19 cases weighed globally on optimism.Attention on the stimulus package grew sharper after new data showed the number of Americans filing first-time claims for jobless benefits jumped to a near three-month high, as spiking COVID-19 cases weighed on economic activity.Read More...

The government on Thursday has decided to present the transaction structure for Pakistan Steel Mills (PSM) in next meeting of Cabinet Committee on Privatisation (CCoP). A high-level committee to review the transaction structure of PSM was held under the chair of Federal Minister for privatisation Mohammedmian Soomro. The committee was constituted by the CCoP on 19th October 2020 to review the transaction structure of the PSM. In the meeting, the transaction structure for the revival of Pakistan Steel mills was discussed holistically. The participants unanimously agreed to the transaction structure recommended by the PC (Privatisation Commission) Board and presented to the CCoP in its meeting held in November 2020. The committee recommended that the transaction structure as proposed by the Ministry of Privatisation may be placed before CCoP in the next meeting for approval.Read More...

Cargill is exploring several opportunities in the agricultural space as Pakistan is an important market for us. Cargill’s global expertise, other than in commodity trade, lies in areas including farming, feed milling, meat processing, oilseed crushing etc,” Mr Nasrullah added. “We aim to leverage our strengths to help address the needs of the Pakistani market, whether through a greenfield investment or collaborating with local partners.” Mr. Imran Nasrullah praised Fauji Foundation as a large corporation that has been doing solid business over the last ten years.“Fauji Foundation has a good reputation in the country. Read More...

In a ceremony held in Sialkot, Prime Minister Imran Khan awarded trophy to the Bank of Punjab for being the Top Performing Bank in Prime Minister’s Kamyab Jawan Program (Youth Employment Scheme) disbursement. The trophy was received by Zafar Masud (President & CEO – The Bank of Punjab) on the behalf of bank. Speaking at the ceremony, the Prime Minister paid a special tribute to Zafar Masud (President& CEO – The Bank of Punjab) for his vital role in working towards boosting economic growth. He appreciated the efforts of the BOP for its role in facilitation of Kamyab Jawan program as well as the Naya Pakistan Housing scheme. The Bank of Punjab is the leading bank in terms of loan amount disbursement in the Phase I and Phase II of the Kamyab Jawan Program. Read More...

The stakeholders have called for the execution of equitable tariff regime for the transportation of RLNG through pipelines of the gas utility for the public and private companies. The demand was made by the stakeholders during a hearing conducted by Oil and Gas Regulatory Authority (Ogra) on the application of SNGPL for the determination of transportation and distribution tariff for the shipper for Fiscal 20-21. However, interveners from the private sector raised serious questions over the heads of transportation and distribution tariff in a petition filed by Sui Northern Gas Pipeline Limited (SNGPL). The government-owned companies were lifting 1200 mmcfd LNG. Read More...