Morning Market Brief 13th Jan. 2021

The Benchmark KSE100 index had succeeded in maintaining above its initial supportive region of 45,500pts during last two trading session and had continued its bullish sentiment during last trading session inside an ascending price channel on hourly chart and now its goin to face resistnace from resistnat trend line of its channel therefore it's recommended to stay cautious during current trading session. For current trading session index would face initial resistance between 42,050pts-46,100pts while breakout above that region could call for 46,200pts and 46,450pts, while on flip side index have supportive regions standing at 45,620pts where a horizontal supportive region would try to push index back on bullish track but in case it would succeed in closing below that region on hourly chart then it could slide further downward till 45,200pts and 44,900pts. Overall a volatile session could be witnessed therefore it's recommended to adopt swing trading for today and buying on dip with strict stop loss of 45,200pts would be beneficial for day trading.

Asian stocks rose on Wednesday, tracking modest Wall Street gains, as expectations that a vaccine will eventually win the battle against the coronavirus fuelled recovery hopes, while tight supply expectations pushed oil prices to a one-year high. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.45%. Chinese shares rose 0.34% while South Korea’s KOSPI gained 0.04%. Japan’s Nikkei 225 rose 0.49%, but Australia’s S&P/ASX 200 bucked the regional trend and fell 0.12%. U.S. stock futures edged up by 0.15%. Treasuries extended their rally in Asian trading, which pulled benchmark 10-year yields further away from the highest in almost a year and caused the yield curve to flatten slightly.Read More...

Sardar Yasir Ilyas Khan, ICCI president who was leading a delegation of Islamabad Chamber of Commerce & Industry (ICCI), visited the Embassy of the People’s Republic of China in Islamabad and held a meeting with Xie Guoxiang, Minister Counsellor (Economic and Commercial), to discuss possibilities of further improving bilateral trade and investment relations between Pakistan and China. Fatma Azim, senior vice president, and Abdul Rehman Khan, vice president ICCI, were in the delegation. She Hua Shiang, Gong Dahui and others were also present at the occasion. Sardar Yasir Ilyas Khan said that Pakistan and China enjoyed strategic friendship which could be further strengthened by developing strong trade and economic relations between the two countries.Read More...

Ministry of Industries and Production is likely to move a summary to Economic Coordination Committee (ECC) of the Cabinet for abolishing imp¬ort duties on raw sugar to ensure adequate stocks in the country at reasonable price. An official of the Ministry of Industries and Production said that sugar prices are once again on the rise. He further said that federal government may also impose a ban on export of Gur as sugar is being smuggled under the garb of Gur exports. Sugar price has surged to around Rs100 per kg in few markets of the federal capital. Market sources are of the view that sugar price might further increase in next few days.Read More...

Car sales in Pakistan increased 18% to 78,910 units during the first six months of the current fiscal year. Industry data showed consumer demand is coming back to normal aided by low interest rates. Suzuki, Indus Motors, Honda and Hyundai sales' were recorded at 67,019 units in the corresponding period last year, Topline Securities said, citing data from the Pakistan Automotive Manufacturers Association. Demand is expected to continue increasing during the year. Passenger car sales increased 12.6 percent to 11,247 units in December from 9,987 units sold during the same period in 2019. Moreover, sales remained lower against 11,914 units sold in November 2020. Jeeps, buses, tractors, three-wheelers and motorcycles have also shown an increase in sales.Read More...

The federal cabinet on Tuesday expressed no confidence in the office of Auditor General of Pakistan (AGP), with Prime Minister Imran Khan saying that corruption amounting to over Rs180 billion had been unearthed in the institution, according to Science Minister Fawad Chaudhry. A cabinet meeting, presided over by the prime minister, decided to form an inter-ministerial committee in the light of recent revelation of the owner of UK-based assets recovery firm, Broadsheet LLC, that some people, including former prime minister Nawaz Sharif, had tried to influence the inquiry. The cabinet also considered lifting ban on export of wheat and wheat flour to Afghanistan to eliminate smuggling and generate revenue through exports.Read More...