Morning Market Brief 5th Feb. 2021

The Benchmark KSE100 index is being capped by an ascending trend line on daily chart which would try to resist against current bullish momentum therefore it's recommended to stay cautious with existing long positions and it's recommended to post trailing stop loss on those positions. For current trading session it's expected that index would try to take a bullish spike towards its resistant regions and initially it would face resistance at 47,140pts-47,350pts while breakout above these regions would call for 47,500pts and 47,655pts. Overall 47,655pts is the most strong resistant region for current trading session where the said ascending trend line would try to cap index. It's recommended to adopt step by step trading with trailing stop loss and it would be beneficial to move trailing stop loss ahead on breakout of each resistant region. Today's bullish rally would got lead from oil & gas exploration sector because international oils prices are going to target 60$/bbl in coming days. While on flip side in case of rejection from its resistant regions index would try to establish ground above 46,660pts-46,500pts but in case of bearish breakout of this region selling pressure would start piling up and index would start moving towards 46,280pts and 45,960pts. On short to mid-term basis index would start moving towards 48,400pts to complete 100% expansion of its last bullish correction once it would succeed in closing above 47,700pts. But as its facing strong resistances between 47,000pts-47,500pts on weekly and monthly chart therefore it's recommended to trade with strict stop loss.

Asian shares hovered near record highs on Monday while oil edged closer to $60 a barrel on hopes a $1.9 trillion COVID-19 aid package will be passed by U.S. lawmakers as soon as this month just as coronavirus vaccines are being rolled out globally. MSCI’s broadest index of Asia-Pacific shares outside Japan was last up 0.3% at 717.2 after climbing as high as 730.16 late last month. Japan’s Nikkei jumped 2% while Australian shares advanced 0.8% led by technology and mining shares. Chinese shares were mildly positive with the blue-chip CSI300 index up 0.1%. E-mini futures for the S&P 500 added 0.4% in early Asian trading. Hopes of a quicker economic revival and supply curbs by producer group OPEC and its allies pushed oil to its highest level in a year as it edged near $60 a barrel.Read More...

As the federal budget deficit has shot up to Rs1.4 trillion in first half of 2020-21, the Federation of Pakistan Chambers of Commerce and Industry’s ruling group has sought a long-term strategy amidst high cost of debt servicing due to heavy loans, jumping to over 87% of the GDP. FPCCI ruling party Businessmen Panel (BMP) Chairman Mian Anjum Nisar observed that the budget deficit is going up despite the government claim of tight control over expenditures, while the only main head of expenditure that remains out of control is the debt servicing cost that jumped by 15% to nearly Rs1.5 trillion. In a written statement, he opposed the excessive borrowing policy of previous governments, as the present government has also added an additional Rs11.35 trillion in the total public debt during the first two years in power, which is more than the total debt the previous government has taken in its five-year term.Read More...

Pakistan earned $763.060 million by providing different information technology (IT) services in various countries during the first five months of financial year 2020-21. This shows growth of 39.03 percent as compared to $548.830 million earned through provision of services during the corresponding period of fiscal year 2019-20, Pakistan Bureau of Statistics (PBS) reported. During the period under review, the computer services grew by 39.75 percent as it surged from $423.910 million last year to $592.430 million during July-November (2020-21).Read More...

The Karachi Port Trust (KPT) handled a total cargo volume of 692,572 tonnes comprising 497,715 tonnes of import cargo and 194,857 tonnes of export cargo from Feb 1 to 4. According to data issued from the KPT, the import volume of containerised cargo stood at 220,916 tonnes, followed by 175,533 tonnes of oil and liquid cargo. KPT handled 30,371 tonnes of imported wheat followed by 29,435 tonnes of bulk cargo, 11,167 tonnes of canola, 18,300 tonnes of rock phosphate, 9,674 tonnes of soyabean seeds and 2,319 tonnes of iron and steel scrap. Export volume consisted of 165,242 tonnes of containerised cargo and 29,365 tonnes of clinkers mainly followed by 250 tonnes of oil and liquid cargo.Read More...

Contesting objections by the federal entities, the Khyber Pakhtunkhwa government is pushing for a transmission and grid system licence to ensure evacuation of about 7,300MW of its power generation lined up through substantial local and foreign investment. The National Transmission and Disptach Company (NTDC) and Central Power Purchase Agency (CPPA) had last month opposed the grant of transmission licence to the Pakhtunkhwa Transmission & Grid System Company (KPT&GSC), saying the existing law allowed only one system operator in the country and the matter fell under Article 154 of the Constitution and hence a policy decision had to originate from the forum of Council of Common Interests (CCI).Read More...