Morning Market Brief 5th April. 2021

The Benchmark KSE100 index is being supported by a descending trend line on daily chart after facing rejection from its bearish correction but momentum indicators are still losing strength therefore it's recommended to stay cautious. As of now it's expected that index would try to bounce back initially from 44,100pts but breakout below that region would call for 43,900pts where 61.85 correction of its last bullish pull back would try to support index against current bearish sentiment. While breakout below 43,900pts would push index into expansion mode of its recent pull back which may lead index towards 41,400pts and 40,500pts. Overall sentiment would remain bearish until index would not succeed in closing above 45,200pts but for current trading session index would face initial resistance at 44,600pts-44,750pts where its being capped by a descending trend line on hourly chart. Index is being caged in a very tight range during current trading session therefore its recommended to post trailing stop loss on existing positions because breakout of either side would push index for 1,000pts in respective direction.

Gas utilities facing supply issues

After constitution of a committee on construction of new Liquefied Natural Gas (LNG) terminals, the gas utilities are said to have expressed concerns over supply issues in the existing pipeline network based on the government’s plan for providing gas to new domestic consumers and other sectors. Last week, a meeting at the Ministry of Maritime Affairs constituted a six-member committee, comprising directors general of the petroleum division and managing directors of the Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL), to address challenges faced by the two upcoming terminals. A top official in the petroleum division said the two gas utilities, particularly the SNGPL, had continuously been protesting over allocation of 150 million cubic feet per day (mmcfd) to private power utility K-Electric on ‘take or pay’ basis while depriving it of an existing, similar arrangement with three public sector LNG-based power plants in Punjab through a decision of the cabinet committee on energy. Read More...

Federal Minister for Planning and Development Asad Umar on Sunday said the projects under China Pakistan Economic Corridor (CPEC) were progressing with fast pace during the tenure of incumbent government. The way government handled pandemic situation and made efforts to contain the spread of pandemic COVID-19, it would also continue working day and night for the success of the CPEC, he said while addressing the reception ceremony of first consignment, carrying equipment and machinery for Century Steel at Karachi Port, for setting up of a steel mill in Rashakai Special Economic Zone. The Minister termed the occasion as another manifestation of exceptional relation between Pakistan and China. Asad Umar said the CPEC was now entering into the most important second phase. The projects were now not limited to infrastructure only.Read More...

The Khyber Pakhtunkhwa government is establishing about 287 trout fish farms mostly in Malakand and Hazara Divisions with an estimated cost of Rs1286.914 million in order to increase production of meat, exports and provide healthy seafood to its people. A senior official of the Fisheries department told APP that KP was blessed with abundance of cold water reservoirs, lakes and favourable climate conditions mostly suited for trout fish farming. To take full advantage of this God gifted potential, the Fisheries department has accelerated work on establishing 287 trout fish farms mostly in Malakand and Hazara divisions to bolster meat production and fish exports to Afghanistan, Central Asian States (CASs), Gulf and others international markets. Under project of ‘development of water fisheries in Khyber Pakhtunkhwa,’ he said these farms were being established with an estimated cost of Rs1286.914 million in different districts of KP mostly in Malakand and Hazara divisions due to its favourable and cold climate besides abundance of water reservoirs suited for trout’s farming.Read More...

Federal minister for Finance and Revenue, Hammad Azhar on Sunday said despite challenges, the economy of the country was in much better condition than it was back in 2018 when the incumbent government assumed the power. Talking in live call session along with Prime Minister, Imran Khan, the federal minister said no doubt challenges were there but there was a sea of difference between the Pakistan of 2018 and today’s Pakistan. He said, in 2018, Pakistan was at the verge of default, but today’s Pakistan, even after the outbreak of Covid-19 pandemic, was moving ahead on the path of growth and progress in better manner, and was much ahead of growth forecast. He said in 2018, the economic indicators were in worse condition and could not be shared with the public through media for their negative impact.Read More...