Morning Market Brief 3rd Mar. 2021

Technical Overview

The Benchmark KSE100 have succeeded in penetration above resistant trend line of its descending wedge on hourly chart during last trading session but it's still being capped by resistant trend line of its bearish price channel meanwhile hourly stochastic have changed its direction towards bearish side which would try to add some pressure on intraday basis. While on daily chart index have major resistant region ahead where a daily double top is going to take place. As of now it's expected that index would face initial resistance between 46,120pts-46,350pts where its being capped by strong resistant components, meanwhile it would face some pressure at 46,250pts where a daily and hourly double top would try push index again downward, while breakout above 46,350pts would call for 46,650pts-46,730pts region. It's recommended to adopt swing trading and start profit taking from existing long positions because index seems to consolidate between 45,700pts-46,350pts during current trading session. In case of bearish breakout below 45,700pts index would try to continue its corrective journey once again which may lead it towards 45,550pts and breakout below this region would call for 45,100pts and 44,800pts. Overall sentiment would remain bearish until index would not succeed in closing above 46,700pts.

Regional Markets

Asian stocks edge higher, Aussie in demand on recovery signs

Asian shares edged higher on Wednesday as investors shrugged off concerns that stocks may have rallied too far too fast in the past year, and focused instead on optimism that more imminent U.S. stimulus will energise the global economic recovery. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.44%. Australian shares were up 0.62%, while Japan’s Nikkei stock index rose only 0.03%. Shares in China gained 0.63%. E-mini S&P futures were up 0.23%. Wall Street had retreated overnight after beginning March with a bang, with the S&P 500 staging its best one-day rally in nine months on Monday. MSCI’s broadest index of global stocks edged up by 0.05%. Oil prices were mixed hitting a two-week low overnight on expectations that OPEC+ producers will ease supply curbs at their meeting later this week as economies start to recover from the coronavirus crisis. U.S. West Texas Intermediate crude was little changed at $59.74 a barrel, while Brent futures rose 0.22% to $62.84 a barrel. Cryptocurrency bitcoin erased early losses and rose 0.62% to $48,814. The digital asset is up 69% so far this year as it gains more acceptance in mainstream financial circles.Read More...

Business News

Nominal increase in local cement despatches, exports decline

Cement sector posted growth of 1.98 per cent in February 2021 as compared to February 2020. Total cement despatches during February 2021 were 4.577 million tons against 4.489 million tons despatched during the same month of last fiscal year. According to the data released by All Pakistan Cement Manufacturers Association (APCMA), local cement despatches in the month of February 2021 showed a nominal increase compared to February 2020. Local despatches were 3.961 million tons in February 2021 compared to 3.735 million tons in February 2020, depicting a growth of 6.06 per cent. Exports continued declining trend as seen during last three months. Total exports dropped by 18.24 per cent from 753,444 tons in February 2020 to 616,030 tons in February 2021.Read More...

Ogra split on flare gas consumption mechanism

The Oil and Gas Regulatory Authority (Ogra) is divided over the specifications, standards and process for commercial consumption of flare gas in the transport sector (through CNG stations). The regulator has adopted different positions at different times on the use of flare gas produced in the oil and gas fields that cannot be transported through pipelines due to quality or economic issues. The flaring of such gas quantities are discouraged globally because of environmental concerns. Under international commitments, the government has introduced flare gas utilisation guidelines and it is being sold as compressed natural gas selectively at limited CNG stations.Read More...

Govt collects Rs679 billion PDL during last three years

The federal government has collected around Rs679 billion on account of the Petroleum Development Levy (PDL) during the last three years to meet the country’s budgetary revenue targets. The petroleum levy collection stood at Rs179 billion in the fiscal year 2017-18, Rs206 billion in 2018-19 and Rs 294 billion in 2019-20, according to an official document available with APP. “Collection of Petroleum Levy being part of Federal Consolidated Fund, in terms of Article 78(1) of the constitution of Pakistan, is utilized to meet federal government’s budgetary requirements,” it said. Meanwhile, a senior official told that the government was working on a prudent strategy to achieve self-reliance in the oil refining sector by upgrading the existing facilities and establishing new deep conversion refineries in different parts of the country.Read More...

Trade deficit widens by 9 per cent to $17.3 billion in eight months

Pakistan’s trade deficit has enhanced to $17.3 billion in first eight months (July to February) of the current fiscal year. The country’s trade imbalance has gone up by 9 per cent to $17.3 billion in July to February period of the year 2020-21 as against $15.87 billion in the corresponding period of the last year. Trade deficit has widened by $1.43 billion in the period under review. The imports have once again increased more than the growth in exports of the country. Pakistan’s imports were recorded at $33.6 billion in July to February period of FY2020-21 as compared to $31.5 billion in the same period of the last year, showing an increase of 6.6 percent. On the other hand, exports have grown by 4.2 percent to $16.3 billion in first eight months of the current fiscal year as compared to $15.64 billion in the corresponding months of the previous year.Read More...