Morning Market Brief 21st May 2021

Technical Overview

The Benchmark KSE100 index is caged in a tight range since last two trading session and have formatted a bearish price channel on hourly chart but this channel seems part of a bearish flag formation therefore it can be expected that index may start a pull back today after getting support from supportive trend line of this channel along with a strong horizontal supportive region between 45,500pts-45,450pts. It's recommended to stay cautious because if index would succeed in closing above 45,760pts during current trading session then it would not only gave a bullish breakout of this hourly flag formation but weekly triangle would also penetrate in bullish direction which would be a major shift in trend for coming days. For current trading session index have supportive region ahead at 45,450pts which is being followed by 45,200pts and 44,860pts. While on flip side it may face initial resistance at 45,760pts where its being caped by resistant trend line of its bearish price channel and breakout above this region would call for 46,000pts and 46,200pts. Hourly momentum indicators are still in bearish mode but a breakout above 45,760pts would drag them towards positive direction.

Regional Markets

Asia shares perk up as receding inflation fears lift Wall Street

Asian stocks rose on Friday, setting the region up for a weekly gain, as investors tempered fears about hot inflation and the prospects of an early tapering of stimulus by the Federal Reserve. Japan's Nikkei jumped 1%, while MSCI's broadest index of Asia-Pacific shares outside Japan added 0.6%. Taiwan's tech-heavy stock index climbed 1.8%, leading gains in the region, while Chinese blue chips added 0.3%. For the week, an index of stocks across Asia-Pacific was set for a 1.9% advance. Futures pointed to a further 0.3% rise for the S&P 500 later in the global day, following a more than 1% jump on Thursday. Tech stocks led those gains as Treasury yields declined following a weaker-than-expected U.S. business activity reading. A decline in commodity prices, particularly oil, also undermined the thesis for too-hot inflation. "It's still a market trying to work out where inflation is going to go, and what that might mean for Fed policy somewhere down the line," said Kyle Rodda, a market analyst at IG in Melbourne.Read More...

Business News

CDWP okays three uplift projects worth Rs55.5bn

The Central Development Working Party (CDWP) on Thursday cleared three development projects worth Rs55.5 billion, including a Rs31.2bn information technology scheme for Karachi. A meeting of the CDWP, presided over by Deputy Chairman of Planning Commission Mohammad Jehanzeb Khan, approved Rs3.4bn for a cancer hospital in Muzaffarabad, Azad Jammu & Kashmir, and recommended two other projects for approval by the Executive Committee of the National Economic Council (Ecnec). The cancer hospital in Muzaffarabad would be set up and operated by the Pakistan Atomic Energy Commission (PAEC) on the pattern of similar hospitals in provincial capitals and Islamabad.The CDWP reviewed the Rs31.2bn project for establishment of IT park in Karachi and recommended its approval by Ecnec. The project to be set up and operated by the Pakistan Software Export Board (PSEB) envisages construction of an 11-storey IT park building to be situated near Jinnah International Airport. The project is funded by the Korean Economic Development Cooperation Fund (EDCF) to an extent of 85 per cent with a $158.5 million loan (Rs26.5bn) and Public Sector Development Programme (PSDP) funding of 15pc.Read More...

Punjab claims 100pc wheat buying target achieved

Punjab claims to have achieved 100 per cent wheat procurement target of 3.5 million tonnes fixed for the province this season. “We’ve achieved the procurement target of 3.5m tonnes within the stipulated time for the first time in history,” Punjab Food Minister Abdul Aleem Khan claimed on Thursday. Sharing procurement details, he said Bahawalpur division produced most of the wheat, with Multan and Dera Ghazi Khan securing second and third spots. The department bought 630,576 tonnes of the grain from Bahawalpur, 541,941 tonnes from Multan and 506,270 tonnes from DG Khan divisions. Whereas 469,626 tonnes of wheat was procured from Faisalabad, 419,198 tonnes from Gujranwala, 332,954 tonnes from Sahiwal, 316,415 tonnes from Lahore and 277,793 tonnes from Sargodha division.Read More...

SBP aiming for predictable, transparent monetary policy

The State Bank on Thursday said that it will begin announcing the half-yearly schedule of Monetary Policy Committee (MPC) meetings on a rolling basis in a bid to make the policy more predictable and transparent. The SBP said it decided to follow international best practices to manage expectations of economic agents, noting that many central banks across the globe release the schedule of MPC meetings in advance. “This practice is consistent with the objective of reducing uncertainty around monetary policy decision-making,” said the SBP. In this regard, the next four meetings of the MPC will be held May 28, July 27, Sept 20 and Nov 26.Read More...

Shipping Service CSC/SIS-II commences calling at Hutchison Ports

Hutchison Ports Pakistan, the country’s state-of-the-art deep-water port, welcomes a new regular shipping service brought by the consortium comprising of Global Feeders, Sinokor, Heung A, and Sea Lead. It strengthens trade links through providing ease of access to the booming markets of South-East Asia, China, and Korea. The service will provide much-needed extra capacity for Pakistani exporters through non-vessel operating common carriers (NVOCCs) as well as mainline operators. This service includes 5 ships operating on a weekly basis. Commenting on this latest development, Raymond Chan, General Manager & Head of Business Unit of Hutchison Ports Pakistan delightedly remarked: “Pakistan’s economic growth in future substantially counts on international trades, especially exports. Hutchison Ports Pakistan are always at the forefront of introducing groundbreaking service offerings that create seamless trade links for Pakistan. CSC/SIS-II is another cornerstone we reached to bring vast arsenal of Pakistan’s tradable commodities to the world”. The organisation is constantly recognised by local and international shipping community on incredible agile performance as well as customer-centric services.Read More...