Morning Market Brief 18th Mar. 2021

Technical Overview

The Benchmark KSE100 index have continued its bullish journey with a positive gap opening during last trading session and closed at exact 61.8% correction of its last bearish rally. As of now hourly and daily momentum indicators are in bullish mode and these would try to push index towards its resistant trend line which falls at 45,840pts for current trading session while this region is being followed by next horizontal resistant trend line at 45,960pts therefore it can be said that index may face strong resistance between 45,850pts-46,000pts during current trading session. While breakout above this region would call for 46,200pts-46,350pts where index would face strong resistance from its daily double top. While on flip side in case of rejection from its resistant regions index would initially start sliding towards 45,090pts and 44,900pts where its initial gap would be fulfilled. It's recommended to post trailing stop loss on existing long positions because index may face rejection below 46,200pts for correction of current pull back. While on longer run index have once again entered into its bullish price channel on daily chart but its recommended to wait for currently week's closing for confirmation of trend.

Regional Markets

Stocks rise after Fed tames inflation fears, projects U.S. GDP surge

Asian shares and U.S. stock futures rose on Thursday after the Federal Reserve committed to maintaining accommodative monetary policy and projected a rapid jump in U.S. economic growth this year as the COVID-19 crisis eases. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.99%, while stocks in China rose 0.46%. Australia’s market bucked the trend and fell 0.3%. E-mini futures for the S&P 500 advanced 0.3%. While inflation is expected to reach 2.4% this year, above the central bank’s 2% target, Fed Chair Jerome Powell called it a temporary surge that will not change the Fed’s pledge to keep its benchmark overnight interest rate near zero. The dollar recouped some losses against the yen but extended declines against commodity currencies, hurt by the lower-for-longer rates commitment by the Fed. Long-term Treasury yields remained elevated in Asian trading as bond investors chose to focus more on rising inflation expectations.Read More...

Business News

X-Wapda Discos demand to transfer Rs91.36b burden to power consumers

Wapda Discos have demanded the transfer of burden of Rs 91.367 billion to power consumers on account of adjustments for the first two quarters (July- Sept 2020 and Oct-Dec 2020) of the current fiscal. In its petition submitted to NEPRA, XWAPDA Discos have demanded Rs 44.709 billion for the first quarter 2020-21(July 2020 to September 2020) and Rs 46.658 billion for the second quarter of 2020-21(October 2020 to December 2020) under quarterly adjustments on account of variation in Power Purchase Price(PPP). In its petition the XWAPDA Discos have demanded Rs 9.287 billion on account of Transmission & Distribution losses on Monthly Fuel Price adjustments.Read More...

Retailers jack up flour prices after sharp increase in wheat rate

Sindh’s new wheat crop has landed in Karachi’s wholesale market with the highest-ever price tag of Rs5,000 per 100 kg bag, fuelling fears it may trigger price distortions in the country, it emerged on Wednesday. The sharp hike in wheat rate is due to a massive increase to Rs2,000 per 40 kg in the wheat procurement price by the Sindh government. Last year, the wheat procurement price in Sindh was fixed at Rs1,400 per 40kg, which took the per 100kg bag price to Rs4,100. Meanwhile, market retailers further pushed up the rate of branded five kg bag of fine flour up to Rs380 from Rs370 and 10 kg bag for Rs740 versus Rs720. The retailers maintain that the price hike came after millers increased prices. Earlier this year in January, five kg and 10 kg flour bags were available at Rs350 and Rs680, respectively.Read More...

Auditor identifies financial discrepancies in RTS

The Auditor General of Pakistan (AGP) has pointed out financial irregularities in the ‘controversial’ electronic Result Transmission System (RTS) that was introduced in 2018 general election but failed to function. The system continues to haunt the Election Commission of Pakistan (ECP). As per the audit report submitted to the Public Accounts Committee (PAC) on Wednesday, the National Database and Registration Authority (Nadra) and the ECP had on Feb 18, 2018 signed an agreement to execute the RTS. The ECP was required to release Rs182.58 million to Nadra on completion of the assignment. The audit observed that “the management entered into an agreement with the ECP for the preparation of software ‘Electronic Result Transmission System’ on Feb 12, 2018 against a lump sum amount of Rs182.584 million.Read More...

Govt urged to facilitate KE deal with Shanghai Electric

Saudi Arabia’s Al-Jomaiah Group on Wednesday sought early resolution of payables and receivables of K-Electric (KE) and urged the government and public sector entities to facilitate the power utility’s takeover by China’s Shanghai Electric Ltd. A press statement issued by KE said that Aljomaih Holdings’ Managing Director Investments Abdulaziz Hamad Aljomaih hoped that the government of Pakistan would expedite the removal of any impediments to the conclusion of Shanghai Electric Power’s (SEP) proposal to take a 66.4 per cent controlling stake in K-Electric Limited. The statement, issued on the conclusion of a two-day visit of the Saudi company’s official, said that Aljomaih was one of the largest investors in KE through the consortium that bought out the KESC in 2005.Read More...