Morning Market Brief 28th April. 2021

The Benchmark KSE100 index have converted its daily morning star into a cheat pattern after facing rejection from a strong horizontal resistant region and a daily double top during last trading session meanwhile it could not gave a bullish breakout of its daily triangle and slide inside this triangle again. As of now it's recommended to stay cautious and post trailing stop loss on existing long positions because initially it's expected that index would face some pressure which may push index towards 45,000pts-44,900pts for completion of correction of its recent bullish rally but breakout below 44,860pts would push index into bearish zone which may prolong towards 44,500pts and 43,900pts. While on flip side in case of pull back from its supportive regions index would face initial resistance at 45,660pts which would be followed by 45,960pts and 46,200pts. Overall index would remain range bound until it would not succeed either in closing above 46,200pts or below 44,500pts therefore swing trading could be beneficial in this range. Currently hourly momentum indicators have changed their direction towards bearish side which indicates that index may take a dip with start of the day, meanwhile daily momentum indicators are in mixed mode therefore it's recommended to adopt wait and see strategy before initiating new positions for short term trading.

Fiscal deficit at 3.5pc of GDP in eight months of current fiscal

Pakistan’s fiscal deficit has reached 3.5 per cent of GDP (Rs1.603 trillion) in first eight months (July-February) of current fiscal year even though the government boasts of having created over Rs1.7tr worth of fresh tax demand. The eight-month deficit is slightly lower than 3.7pc of GDP or Rs1.613tr of same period last year when the country finally posted 8.1pc of annual budget deficit — one of the highest. In its April 2021 Monthly Economic Update and Outlook, the ministry of finance has raised concern on account of third wave of the Covid-19 pandemic threatening economic concerns and putting pressure on recovery, but said timely government decisions and small lockdown policy were helping the economy to keep its pace of recovery.Read More...

Federal Minister for Finance and Revenue Shaukat Tarin on Tuesday said the government was ready to extend all possible support to the K-Electric (KE) for overcoming constraints and making it dynamic and sustainable in the long-run. A KE delegation led by its Chairman Shan A. Ashary, Board of Director member Khaqan Khan and CEO Syed Moonis Abdullah Alvi called on the finance minister. The KE chairman briefed Mr Tarin about the utility’s operations and the challenges faced by it. Meanwhile, the finance minister expressed satisfaction over the headway made across all the areas of the Financial Action Task Force action plan and resolved to continue efforts for timely completion of the remaining parts of it.Read More...

Pakistan and Japan on Tuesday signed debt suspension agreements amounting to $367 million under the G-20 Debt Service Suspension Initiative (Phase-I). Noor Ahmed, Secretary of Economic Affairs Division, and Kuninori Matsuda, Ambassador of Japan to Pakistan, signed these agreements in Islamabad. The signing ceremony was witnessed by senior officials of Japanese Embassy. In the wake of COVID-19, the G20 countries, together with the Paris Club creditors, announced a Debt Service Suspension Initiative (DSSI) to provide much needed fiscal space to stressed countries in order to meet their urgent economic and health needs. The Government of Pakistan, taking advantage of this initiative, entered into negotiations with 21 creditor countries for debt suspension amounting to US$ 1.6 billion under DSSI Phase-I (April – December, 2020). The Government of Pakistan will repay the suspended amount in 4 years starting January, 2022. Read More...

The Oil and Gas Regulatory Authority (Ogra) has appointed independent third-party inspector to conduct the meter testing of industrial and commercial gas consumers. “It is circulated for information of industrial and commercial consumers of natural gas/ RLNG that the Authority, in pursuance of clause 8.2 of Natural Gas Measurement (Technical Standards) Regulations, 2019 has authorised M/s Hydrocarbon Development Institute of Pakistan (HDIP) on its behalf for witnessing inspection of gas meters which may include but not limited to the verification of accuracy of gas meters and field calibration of measuring devices to check compliance of the standards specified by the Authority in the regulations, spokesman Ogra said here Tuesday. Read More...