Morning Market Brief 30th Dec. 2020

The Benchmark KSE100 index have faced rejection from resistant trend line of its bullish price channel on daily chart along with a daily double top and strong horizontal resistant region during last trading session and have tried to format a bearish engulfing pattern. as of now it's expected that index would remain under pressure until it would not succeed in closing above 43,650pts but an intraday spike could be witnessed therefore selling on strength could be beneficial. Overall index would remain range bound until would not succeed either in closing above 44,000pts or below 43,650pts. Daily momentum indicators are facing pressure and index would start losing strength if it would not succeed in closing above 43,500pts-43,650pts during current trading session because chances of a weekly evening shooting star are becoming evident after a weekly hammer and a daily double top formation. For current trading session index have supportive regions ahead at 42,880pts while breakout below that region would call for 42,650pts. While on flip side in case of bullish pull back index would face initial resistance at 43,550pts which would be followed by 43,650pts and 44,000pts. It's recommended to stay on selling side with strict stop loss of 43,700pts and keep watching international oil prices because if WTI would not succeed in closing above 48.60$/bbl on hourly chart then E&P sector would start adding pressure on index which may lead index further downward.

Asian shares hit a record high on Wednesday as investors bet on a strong economic recovery next year, as there is little sign policymakers wind back massive stimulus efforts aimed at staving off coronavirus-fuelled downturns.MSCI’s gauge of Asia-Pacific shares excluding Japan rose 0.6% to hit a record high, led by gains in Chinese shares, bringing its gains so far this year to 18.2%. Japan’s Nikkei share average lost 0.58% on its last trading day of 2020 after jumping to a 30-year high on Tuesday. For the year, it was up 15.8%. “Investors stick to a bullish view overall and some are starting to bet further on rise in equity prices,” said Masanari Takada, cross-asset strategist at Nomura Securities. Convictions that global monetary authorities will continue to pump liquidity into the banking system to support the pandemic-stricken economy underpin risk assets.Read More...

Federal cabinet on Tuesday extended the service tenure of the Federal Board of Revenue (FBR) chairman Javed Ghani. In July this year, the federal government had assigned the additional charge of chairman FBR to member Customs Javed Ghani for a period of three months or till the appointment of regular chairman FBR after removing Nausheen Javed from the post. Later, the government had further extended the service tenure of chairman FBR for three months. However, the federal cabinet on Tuesday appointed Javad Ghani as FBR chairman on permanent basis. The government has performed well in last months in terms of tax collection by surpassing the target in last five months (July to November) of the current fiscal year.Read More...

The Pakistan’s apex chamber has rejected the government’s move of raising energy cost by up to 30% before the end of this calendar year to qualify for restoration of the stalled $6 billion IMF loan programme, as it has just notified the power tariff increase of 18 paisas/unit on Monday (Dec 28) under this plan. FPCCI president Mian Anjum Nisar lamented that the government has decided to hike power tariff by around 30% or Rs3.30/unit before Dec 31, 2020 in phases, leading the economy towards point of no return due to interference of International Monetary Fund in the Pakistani economy. He said the authorities have started to implement this plan, as the Ministry of Energy has issued a notification to increase the power tariff from Rs13.35/unit to Rs13.53/unit which is applicable on consumers using more than 300 units and is effective from Dec 1, 2020. Read More...

Central Development Working Party (CDWP) Tuesday referred Greater Karachi Water Supply Scheme (K-IV) 260 MGD (Phase-1) worth Rs25,551.77 million to Ecnec for approval. The CDWP also asked Sindh government to assure that they will pay the provincial 50 per cent share on time, an official source told The Nation. Central Development Working Party (CDWP) meeting chaired by Deputy Chairman Planning Commission Mohammad Jehanzeb Khan, approved three projects worth Rs5.52 billion and recommended one project worth Rs25.22 billion to ECNEC for consideration. The CDWP referred Greater Karachi Water Supply Scheme (K-IV) 260 MGD (Phase-1) worth Rs. 25,551.77 million to ECNEC for approval.Read More...

The palm oil imports increased by 29.40 per cent during the first five months of the current fiscal year against the imports of the same period of last year. The palm oil imports during July-November (2020-21) were recorded at $876.016 million against the imports of $676.977 million during July-November (2019-20), showing an increase of 29.40 per cent, according to latest data of Pakistan Bureau of Statistics (PBS). In terms of quantity, Pakistan imported 1,333,423 metric tons of palm oil during the period under review as compared to the imports of 1,230,502 metric tons last year, showing an increase of 8.36 per cent. On the other hand, the soyabean oil imports also increased by 21.76 per cent by going up from $39.677 million last year to $48.310 during the current fiscal year.Read More...