Morning Market Brief 15th Dec. 2020

The Benchmark KSE100 index have reached its major resistant regions where resistant trend line of its previous bullish price channel would try to cap current bullish sentiment around 43,700pts and index would face major resistance between 43,500pts-44,000pts, it’s expected that index would try to open with a positive gap and would try to take a bullish spike towards 43,500pts or 43,700pts where major resistant regions would push it back and later on it would face some serious pressure on intraday basis and it would start turning down for a correction. While in case of abnormal behavior it would try to close above its major resistant region of 43,500pts to attract public for fresh buying but it’s recommended to avoid new buying for short term trading until index would not take a dip to complete intraday correction. In case of reversal index would establish ground above 42,850pts, where it would find support from previous top while breakout below that region would push index towards 42,500pts. Daily momentum indicators are in bullish mode but it’s recommended to stay cautious because index is trading below its major resistant region on monthly chart and reversal from this region could push index for a major dip.

Asian stocks drifted lower on Tuesday as worries about increasing COVID-19 deaths and lockdowns overshadowed optimism about the roll-out of coronavirus vaccinations.“Meanwhile several jurisdictions continue to struggle with major outbreaks with a particularly notable rise in cases in the U.S.,” they said. Most Asian markets retreated in early trade, with MSCI’s index of Asia-Pacific shares outside Japan falling 0.4%, having hit a string of record highs last week. E-mini futures for the S&P 500 rose 0.1%. Chinese stocks were down 0.2%. Markets in Japan and South Korea, both grappling with surging infection numbers and growing public frustration, slipped 0.2% and 0.3%. Hong Kong gave up 0.5%.Read More...

Ex-Wapda Discos are all set to transfer the burden of Rs 14 billion to power consumers as NEPRA has allowed an increase of Rs 1.1138 per unit in electricity tariff under fuel price adjustment for the month of September 2020. In its petition with NEPRA, the Central Power Purchasing Agency (CPPA) had proposed an increase of Rs1.3697 per unit in power tariff, under fuel price adjustment, for the month of September 2020 for ex-Wapda Discos. However, NEPRA after hearing had reserved the judgment and after going through the data provided by CPPA it has allowed Rs 1.1137 per unit increase in power price instead of the demanded Rs1.3697.Read More...

A newly laid 17-kilometre pipeline from the Port Qasim to Pakland in Karachi is being hydro-tested to inject additional gas supply in the system of Sui Southern Gas Company (SSGC) aimed at meeting the increased commodity demand during the peak winter season. “The pipeline will be commissioned very soon. This will further facilitate the flow of Regasified Liquefied Natural Gas (RLNG) and reduce the possibility of gas shortages in the country,” official sources told APP. The 30-inch dia pipeline has been laid from the Custody Transfer Station (CTS) of RLNG at the Bin Qasim [Qasim Port Karachi] to Sales Meter Station Pakland where the SSGC transmission network is available for injecting the RLNG. They said the SSGC had been requesting the Sindh government for more than one-and-a-half years to give the ‘Right of Way’ for laying the pipeline in Karachi, which it managed to secure recently and started work on the pipeline without any delay on a war footing.Read More...

National Price Monitoring Committee (NPMC) on Monday noted that prices of basic food commodities are showing decline due to the policies of the incumbent government. Finance Minister Dr Abdul Hafeez Sheikh chaired a meeting of NPMC yesterday. The National Price Monitoring Committee (NPMC) reviewed the availability of essential commodities namely wheat, flour, sugar, tomatoes, onions, vegetable ghee and chicken. The finance secretary apprised NPMC that there has been a consistent decline in prices for the last three weeks. The weekly SPI data showed that prices declined by -0.3 percent in the last week, notably in essential food commodities including sugar, onions, potatoes, rice and pulses. This is due to improved availability of wheat, sugar, and vegetables due to imports by government and private sector.Read More...

Adviser to Prime Minister for Commerce and Investment Abdul Razak Dawood on Monday said that the government is committed to accelerate the establishment of a Potato Development Council under the forthcoming Strategic Trade Policy Framework (STPF). He said that he held a fruitful consultative session with the farmers and exporters of potatoes at the ministry of commerce. “We discussed problems facing the exports of potatoes and discussed ways forward. We agreed to expedite the establishment of a Potato Development Council under the forthcoming STPF, which will formulate a long-term vision and policy for this sector,” said Adviser on Twitter. He said that he would visit the potato growing area to meet the farmers and also see the storage facilities.Read More...