Morning Market Brief 19th jul. 2021

Technical Overview

The Benchmark KSE100 index is trying to penetrate above resistant trend line of its triangle on daily chart, meanwhile daily momentum indicators have changed their towards bullish side on last trading session's closing therefore it's expected that index may try to take an intraday spike but it's recommended to stay cautious because it's still being capped by a strong resistant trend line along with a horizontal resistant region between 48,000pts-48,065pts on hourly chart, while hourly momentum indicators are ready for a bearish crossover which would be negative for bullish sentiment and index may start sliding downward after facing rejection from its resistant regions. Overall sentiment would remain mixed until index would not succeed either in closing above 48,300pts or below 47,200pts on daily chart. It's recommended to post trailing stop losses on existing long positions and wait for a clear breakout of either side to initiate new positions for short term trading. Breakout above 48,065pts would call for 48,350pts but on intraday basis it seems that index would face some serious pressure and would try to retest its supportive regions at 47,500pts initially and breakout below this region would call for 47,200pts.

Regional Markets

Asian shares hit 1-wk lows on renewed virus scare, inflation worry

Asian shares slipped to a one-week low on Monday and perceived safe haven assets, including the yen and gold, edged higher amid fears of rising inflation and a surge in coronavirus cases, while oil prices fell on oversupply worries.MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.1% for a second straight day of losses to 677.45, a level not seen since July 12. The index was on track for its biggest daily percentage drop since July 8.Japan's Nikkei dropped 1.3% as did Australia's benchmark share index. South Korea's KOSPI was 1% lower, while Chinese stocks also started on the backfoot with the blue-chip index down 0.6%.Read More...

Business News

Gas supply diverted to power sector to meet its peak demands: Hammad Azhar

The government has diverted gas supply from CNG and general Industries to power sector as parts of the country facing prolong power outages to bridge the electricity demand and supply gap.Due to a lightning strike on China Hub power plant and Low outflows from Mangla dam, some local gas (3.75pc of total) is being diverted to the power sector to meet its peak demands, said Federal Minister for Energy Hammad Azhar said here. In a tweet he said that this is a temporary arrangement for a few days.The government seems to be once again behind the power demand and have resorted to gas load management to cater for the power sector demand. The latest dip in electricity supply comes as supply from China Hub Power plant disrupted by lighting.Read More...

Chilli farming under CPEC to expand over 5000 acres in Pakistan

After a successful pilot project at 100 acres under China Pakistan Economic Corridor (CPEC), the next phase of Chilli farming will be ready for launch with upcoming sowing.Referring to an article published by China Economic Net, Chairman CPEC Authority Lt Gen (Retd) Asim Saleem Bajwa on Sunday in a tweet said, the Chilli farming could spread over an area of 5000 acres in various regions of the country. According to the article of China Economic Net, Pakistan has ideal conditions for Chilli/Pepper (Capsicum Annum L.) cultivation. Pakistan is amongst the top ten chilli producing nations which enjoy a combination of warm, humid yet dry weather and a well-drained sandy loam with rich organic content. However, Pakistan’s chilli production has been lower than the world average for the same period since 2015.Read More...

Punjab agriculture dept offers 50pc subsidy on solar system

Punjab Agriculture Department is offering 50 per cent subsidy on provision of solar system to farmers with an aim to operate drip irrigation across the province. According to official sources, the government has earmarked Rs 3.57 billion on provision of subsidy. Initially, the solar system would help energise machines to ensure the functioning of drip irrigation systems. In the province, the direct sunlight was available for more than 8 hours and thus solar system could yield good results. About 20,000 acres would be energised through solar system facility in the province. The installation of solar system would reduce expenses and offer more production because it ensured direct supply of water to plants.Read More...

Mismanagement, fuel shortage blamed for outages

Fuel shortages caused by inadequate supply arrangements and forced outages are leading to serious power supply constraints as consumers suffer in extreme humid conditions across the country.A senior official of the Power Division conceded that power companies had been compelled by unavoidable circumstances to apply forced power cuts ranging between 1,000MW and 2,000MW in peak hours. This does not include revenue-based loadshedding of 2,500-4,000MW depending on how the relevant authorities are technically able to park shortages.Read More...