Morning Market Brief 20th April. 2021

Technical Overview

The Benchmark KSE100 index had faced rejection from its 74.6% correction level and slide downward towards a major horizontal supportive region. Meanwhile daily momentum already have turned towards bearish side and index needs to close above 45,500pts to set its direction towards 46,200pts and 47,000pts otherwise selling pressure would start piling up. As of now index have supportive region ahead at 44,500pts where it would try to establish ground above a horizontal supportive region but breakout below that region would push index towards 44,200pts. While on flip side in case of bullish pull back index would face initial resistance at 45,240pts while breakout above this region would call for 45,550pts. Currently hourly momentum indicators are in mixed mode and these don't have set their direction clearly so it's recommended to stay cautious. Meanwhile hourly MACD have changed its direction towards bearish side which is a negative sign and daily closing below 44,500pts would push this indicators in bearish direction.

Regional Markets

Asian shares up on China gains but tech worries weigh

Asian shares rose on Tuesday, led by a stronger Chinese opening and shaking off the initial drag from tech-driven Wall Street losses, while the dollar stayed at multiweek lows against other major currencies. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.2%, swinging into positive territory after Chinese blue chips rose 0.13%. South Korea gained 0.4%. Elsewhere, Japan's Nikkei dropped 1.84%, as the country continues to grapple with a resurgence in COVID cases. Australia slipped 0.33%. Hong Kong fell 0.11% although Chinese food delivery giant Meituan's (3690.HK) shares rose 1.59% after the company said it had raised a huge $9.98 billion through an equity and convertible bond sale. he tech-heavy Nasdaq (.IXIC) was the biggest mover, falling 0.98%, while the Dow Jones Industrial Average declined 0.36%, and the S&P 500 0.53%. However, e-mini futures for the S&P 500 rose 0.13%, suggesting markets could bounce back later in the day. In currency markets, the dollar continued its recent weakness, falling further from six week lows it hit on Monday.Read More...

Business News

Finance minister evaluates PBS data collection, analytical techniques

After taking oath of Office, the Federal Minister for Finance and Revenue, Shaukat Fayyaz Ahmed Tarin held an introductory meeting with Secretary Planning, Development & Special Initiatives/ Chief Statistician, to evaluate the current techniques of data collection and analysis used by the Pakistan Bureau of Statistics (PBS). The Chief Statistician gave a detailed briefing to the new minister on evidence based data collection techniques followed by the bureau in compiling figures particularly for CPI and SPI. The minister appreciated the technology-based data gathering techniques followed by the bureau after doing away with the paper based approach and directed them to follow such methods that could further assist in making the data more objective, targeted, and authentic for the purpose of comparison and analysis.Read More...

Govt targets to increase economic growth to 5.1pc by fiscal year 2023-24

The PTI-led coalition government has targeted to create up to 1.9 million jobs, restricting budget deficit to 4.4 per cent of the GDP and increasing country’s economic growth to 5.1 percent by fiscal year 2023-24. In the medium term (FY2021-22 to FY2023-24), the focus of fiscal policy will be on sustainable, inclusive and equitable growth; job creation (1.2-1.9 million in medium terms); protection of vulnerable segments of the population; inflation control, and higher development spending,” the ministry of finance stated in Medium Term Budget Strategy Paper (MTBSP) 2021-22—2023-24. The government has envisaged economic growth at 5.1 per cent by fiscal year 2023-24, which would be driven by a sustained increase in the aggregate supply backed by a strong forex reserve position. The GDP growth is projected at 2.9 percent for the ongoing financial year, which is expected to increase to 4.2 percent in next fiscal year and to 4.6 percent in year 2022-23.Read More...

Foreign direct investment falls by 35pc in nine months

Foreign direct investment (FDI) has kept falling during the current fiscal as it declined by 35 per cent at the end of the third quarter, reflecting no improvement in the situation for investors. According to State Bank of Pakistan (SBP) data issued on Monday, the FDI fell by 35.1pc to $1.395 billion during July-March FY21 compared to $2.15bn in the same period of last fiscal. The inflow in March was just $167.6 million compared to $278.7m in the same month of last year — a decline of 40pc. However, as the inflow in March this year slightly improved compared to February when the inflow was $155m, the FDI trend shows that the overall trend is on the decline.Read More...

Ogra urged to approve two LNG re-gasification terminals at PQ

In a public hearing organised by Oil and Gas Regulatory Authority (Ogra) on petitions for grant of licences for construction and establishment of two LNG re-gasification terminals at Port Qasim Karachi, all the stakeholders have supported the issuance of licences and unanimously asked the authority to expedite the process of grant of licences to private investors. Oil and Gas Regulatory Authority (Ogra) on Monday held public hearing on petitions for grant of licences for construction and establishment of an LNG re-gasification terminal including all allied facilities at Port Qasim, Karachi. The hearing was presided over by Chairman Ogra, Masroor Khan, was attended by Member Gas Muhammad Arif, Member Oil Zainulabideen Qureshi and a number of large consumer groups like cement producers, CNG station operators, power companies and textile industry. Read More...