Morning Market Brief 11th Jan. 2021

The Benchmark KSE100 index is moving ahead after breakout of its major resistant region of 45,000pts and current bullish rally is expanding in an ascending price channel, as of now it's being considered exhausting on intraday momentum indicators which indicates that index may take a dip on intraday basis if it would not succeed in maintaining above 45,500pts during current trading session. But these dips would be considered healthier for index as long as it's trading above 44,200pts and these would push index again towards it next resistant regions. For current trading session it's expected that index would try to target it's next resistant region at 46,050pts while breakout above this region would call for 46,500pts and 46,750pts in coming days. As it's being supported by a rising trend line on hourly chart therefore it's recommended to keep an eye on that line because bearish breakout of that line would push index for an intraday dip. In case of bearish penetration of its initial supportive region of 45,450pts index would take a dip towards 45,070pts-44,920pts region where it's being supported by a strong horizontal supportive region. It would remain bullish as long as it's trading above 44,000pts therefore buying on dip would be beneficial with strict stop loss of this region but breakout of this region in bearish direction would push index for a deeper correction towards 43,000pts or 42,500pts.

Asian shares took a breather on Monday while Treasury yields were at 10-month highs as “trillions” in new U.S. fiscal stimulus plans were set to be unveiled this week, stoking a global reflation trade. Investors were keeping a wary eye on U.S. politics as pressure grew to impeach President Donald Trump, though signs were an actual trial could be some time away. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.2%, having surged 5% last week to record highs. Japan’s Nikkei was on holiday after closing at a 30-year high on Friday. South Korea went flat after an early jump, and Chinese blue chips firmed 0.7%. “Asia has come through the second global crisis this millennium with its credentials,” said ANZ chief economist Richard Yetsenga.Read More...

Pakistan earned $121.980 million by providing different travel services in various countries during the first four months of the current financial year 2020-21. This shows the decline of 27.87 per cent as compared to $169.104 million same services were provided during the corresponding period of the fiscal year 2019-20, Pakistan Bureau of Statistics (PBS) said. During the period under review, the personal travel services decreased by 27.54 per cent, from $167.264 million last year to $121.200 million during July-October (2020-21). Among these personal services, the exports of personal and education-related expenditure however witnessed an increase of 89.66 per cent and 47.08 per cent respectively.Read More...

The government has planned to construct the Strategic Underground Gas Storages (SUGS) in August this year to meet the increasing gas demand in future, which were considered mandatory along with the import of LNG as per international practices. “Feasibility study of the SUGS is scheduled to be completed in May, while construction on these facilities will start in August 2021,” a senior official privy to petroleum sector developments told APP. He said it was unfortunate that the previous government had introduced the Liquefied Natural Gas (LNG) in Pakistan’s market without constructing any storage facility and declaring it a petroleum product, due to which it cost almost double than the locally produced gas. In the given scenario, the official said every LNG shipment had to be consumed within four to five days, in the absence of storage facilities, for berthing of another cargo ship.Read More...

Oil and Gas Development Company Limited (OGDCL) Managing Director Shahid Salim Khan said the company has successfully injected additional 2,666 BPD oil, 82 MMCFD gas and 77 MTD LPG in its production gathering system during the second quarter of the fiscal year 2020-21, ending on December 31. “The company has achieved a milestone by adding massive production in a short span of last two months of the year 2020,” he said in a press statement. During the second quarter, he said, the company remained a market leader in oil and gas sector by contributing 48 per cent in oil, 27 per cent in gas and 37 per cent in LPG production of the country.Read More...

As Pakistan’s trade deficit has widened by 32 per cent to $2.683 billion in December, the businessmen on Sunday urged the government to focus on further enhancing exports, because the declining imports have now started picking up, indicating the growing economic activities but signalling the widening of trade deficit too which is not good for the economy. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) former President Mian Anjum Nisar, who is also the Businessmen Panel Chairman, stated that Pakistan’s trade deficit widened nearly one-third in December 2020 despite a much-trumpeted increase in export but it was not sufficient to match the surge in imports that jumped to $5 billion. He said that the economic managers were boasting of their performance on the plea of current account balance, increasing to $447 million in Nov 2020 for the fifth month in a row. Read More...