Morning Market Brief 1st Mar. 2021

Technical Overview

The Benchmark KSE100 index have created a hammer on daily chart after facing rejection from its initial resistant region which falls at a horizontal resistant line along with 50% correction of its previous bearish rally. It's recommended to stay cautious because index still have succeeded in maintaining above its major supportive region of 45,500pts. For current trading session it's expected that index would face some serious pressure which may push index towards 45,500pts where it would try to establish ground above a strong horizontal supportive region while breakout below that region would call for 45,200pts-45,100pts region meanwhile an evening shooting star would take place on daily chart which would increase panic among short term traders. While on flip side in case of bullish reversal index would try to target 46,150pts-46,250pts region where daily double top would try to push it back in negative zone but breakout above this region would call for 46,500pts. Overall a volatile session could be witnessed during current trading session and daily bullish stochastic along with positive gap opening of Crude oil prices would try to neutralize bearish sentiment but it's recommended to stay on selling side with strict stop loss.

Regional Markets

Asian stocks rally, battered bond market tries to steady

Asian shares rallied on Monday as some semblance of calm returned to bond markets after last week’s wild ride, while progress in the huge U.S. stimulus package underpinned optimism about the global economy and sent oil prices higher.MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.8%, after shedding 3.7% last Friday. Japan’s Nikkei rallied 2.1%, while Chinese blue chips added 0.5%. NASDAQ futures bounced 1.2% and S&P 500 futures 0.9%. EUROSTOXX 50 futures and FTSE futures both rose 1.1%. Yields on U.S. 10-year notes came off to 1.41%, from last week’s peak of 1.61%, though they still ended last week 11 basis points higher and were up 50 basis points on the year so far.Read More...

Business News

APBUMA demands elimination of cartels, mafias to put national economy on sound footing

All Pakistan Bed-sheets and Upholstery Manufactures Association (APBUMA) has demanded the government to eradicate cartels and mafias for putting the national economy on a sound footing. Talking to the media on Sunday, APBUMA Senior Vice Chairman Engineer Bilal Jamil said that due to government policies and especially the dynamic and active role of the SME sector, the national exports were witnessing a monthly increase of 2 billion dollars but the mafia created artificial shortage of yarn in the country to put it in back-gear. He termed the SME sector as growth engine for national economy and said that big cartels and mafias were stealing all benefits while those working with little capital were deprived of this facility. The government should adopt a mechanism to ensure that every person who contributes to exports gets his fair share of subsidy, he said. He said the APBUMA was the largest organisation in the SME sector with a share of 1.5 billion dollars in the total textile exports of 12 billion dollars which needs special attention by the government.Read More...

ECO freight train to resume operations after nine years

After a gap of nine years or so, the Istanbul-Islamabad freight train is likely to resume operations on March 4, connecting goods train business of three countries —Turkey, Iran and Pakistan. “We have been informed by the quarters concerned that the container train would start its journey from Istanbul (Turkey) for Islamabad (Pakistan) via Zahidan on March 4. Though the schedule will be reconfirmed in a day or two, so far March 4 is the final date of departure of the train from Istanbul,” said a senior official of the Pakistan Railways while speaking to Dawn on Sunday. “In Pakistan, ministries of foreign affairs and railways are coordinating with the Economic Cooperation Organisation (ECO) Secretariat that is also in contact with the respective departments/ministries of Turkey and Iran,” he added.Read More...

Eight-month revenue collection of Rs2,916 billion exceeds target: FBR

The Federal Board of Revenue (FBR) has collected revenues of Rs.2916 billion during the first eight months (July-February) of current year, exceeding the target of Rs2,898 billion set for the period. As compared the same period of last year, the collection witnessed growth of about 6 percent when compare to the collection of Rs2,750 billion in July-February (2019-20). Meanwhile, the net collection for the month of February 2021 was recorded at Rs343 billion against the target of Rs325 billion. On the other hand, the gross collections increased from Rs2,823 billion during this period against the collection of Rs3,068 billion lastly year, showing an increase of nearly 9%. The amount of refunds disbursed was Rs152 billion compared to Rs79 billion paid last year, showing an increase of 97%. This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry. Read More...

Govt releases Rs63,978.21 million for water projects so far

The government has released a sum of Rs63.978.216 million for various water resource projects under annual Public Sector Development Programme (PSDP) for fiscal year 2020-21 so far. According to the data of Planning Commission, an amount of Rs79,380.563 million was allocated for various water resource sectors in the current fiscal year. Out of total allocation, domestic share was Rs65,882.563 million while foreign component was estimated as 13,498 million. An amount of Rs52,706.050 million was released from domestic share while Rs11,272.166 million was received under foreign component so far. An amount of Rs16,000 million has been allocated for Diamer Basha Dam (Dam Part), Rs5,000 million for Diamer Basha Dam Project (Land Acquisition and Re-settlement),Read More...