Morning Market Brief 14th Jan. 2021

The Benchmark KSE100 index is facing rejection from resistant trend line of it bullish price channel since last two trading sessions and now hourly momentum indicators have changed their direction towards bearish side therefore it's expected that index would face some pressure during current trading session. It's recommended to avoid short selling until index gave a clear reversal sign on daily chart but post trailing stop loss on existing long positions. MACD on hourly chart have changed it's direction towards bearish side therefore it's expected that it would lead prices for an intraday correction. For current trading session index have resistant regions ahead at 46,350pts which would be followed by 46,500pts and 46,650pts, while on flip side in case of reversal index would try to establish ground above 45,750pts-45,800pts initially while breakout below this region would call for 45,500pts. Overall sentiment would remain bullish until index would not succeed in sliding below 45,500pts on daily chart.

Bonds slipped, Japanese stocks jumped to a three-decade high and other Asian equities loitered near record peaks on Thursday as investors focused on U.S. stimulus prospects and extended bets on global recovery and growth. Japan’s Nikkei rose 1.4% to its highest point since August 1990. It is up more than 8% in three weeks. MSCI’s broadest index of Asia-Pacific shares outside Japan was steady and just a whisker short of Monday’s all-time high. Read More...

Federal Board of Revenue has devised an Integrated Strategy which has amply contributed to significant increase in exports of Pakistan from $1.6 billion (in August, 2020) to $2.4 billion (in December, 2020). Growth in exports of Pakistan in December 2020 is up by 18.3 per cent as compared to $1.993 billion in the corresponding month last year. While mentioning factors that have facilitated growth in exports, FBR has stated that import duties on 1,623 tariff lines, pertaining to basic raw material and intermediate goods were reduced to zero through the Finance Act, 2020. In pursuance of this strategy, additional customs duties and regulatory duties on 164 items related to textile sector, not manufactured in the country, were also removed in collaboration with all the stakeholders.Read More...

The output of Large Scale Manufacturing Industries (LSMI) in the country witnessed 14.46 per cent growth during November 2020 as compared to the corresponding month of last year. The domestic industrial output grew by 1.35 per cent on a monthly basis when it compared with the production of October 2020, according to the provisional quantum indices of Large Scale Manufacturing Industries (LSMI) released by the Pakistan Bureau of Statistics. The data have been developed for November 2020 with the base year 2005-06 based on latest data supplied by the source agencies, it added. During the period from July-November, 2020-21, the overall output of LSMI increased by 7.41 per cent as compared to the same period of last year, it added.Read More...

The Pakistani economy is on the path to stability and recovery, with LSM including automotive industry playing its part. It gives us great satisfaction that Hyundai-Nishat also has a part to play in this. When Nishat Group decided to introduce Hyundai to Pakistan two years back, we did expect a good response. But the acceptance and appreciation the Pakistani people have shown towards Hyundai have been nothing short of overwhelming. For this, I am truly grateful to Pakistan and its incredible people who have given Hyundai a chance to be part of their families. Moving forward into the New Year I can assure you that we have no intention of slowing down now. In fact, through the double shift, we shall boost our production by 100 per cent in the First Quarter of 2021.Read More...

Moody’s Investors Services (Moody’s) has noted that economic activity in Pakistan would remain below pre-outbreak levels, although the economy should return to a modest 1.5 per cent growth in fiscal 2021. Moody’s in its latest report “Pakistan banks face slow economic recovery, but solid funding and liquidity underpin stable outlook”, stated that the coronavirus pandemic is weighing on economic activity in Pakistan and real GDP contracted by 0.4 per cent in fiscal 2020. “We expect the economy to return to growth in fiscal 2021, reaching a modest 1.5 per cent. Although high-frequency indicators suggest that economic activity has started to rebound, restrictions on movements to prevent the spread of the coronavirus will keep economic output below pre-outbreak levels for some time. Growth will, however accelerate to 4.4 per cent in 2022”, it added. “We expect the Pakistani economy to return to modest growth of 1.5 per cent in fiscal 2021 after activity picked up at the start of the fiscal year in July, Moody’s added.Read More...