Morning Market Brief 5th May 2021

The Benchmark KSE100 index have formatted a morning star on daily chart during last trading session which successfully pushed index inside its previous triangle but it's recommended to wait for confirmation of this morning star by daily closing above 44,760pts today before initiating new long positions for short term trading. Meanwhile index have succeeded in penetration above 38% correction of its recent bearish rally on hourly chart. As of now it's expected that index would face major resistance at 44,760pts where it's being capped by a strong horizontal resistant region and 50% correction of its last bullish rally also fall on same level, therefore it's recommended to stay cautious and post trailing stop loss on existing long positions because if index would not succeed in breakout above this region then a sharp dip on intraday basis could be witnessed which may lead index towards 44,230pts. While breakout above 44,760pts would open doors for 45,000pts and 45,200pts. Hourly stochastic is exhausting while daily momentum indicators are ready for bullish crossovers but it's recommended to wait for confirmation before initiating new long positions.

 

Formation of panel ordered to address IPPs’ issues

A few hours after Information Minister Fawad Chaudhry’s announcement that the federal cabinet has decided to pay 40 per cent dues of Independent Power Projects (IPPs), the Prime Minister Office clarified on Tuesday evening that the cabinet only approved the formation of a committee to address the long-standing issue. Addressing a press conference after the cabinet meeting, Mr Chaudhry said the cabinet had decided to pay 40pc dues of IPPs. However, a press release issued by the PMO later said the cabinet had approved decisions of the Economic Coordination Committee (ECC), including formation of a committee to settle IPPs’ issues and outstanding dues. The committee will take a decision regarding payments against dues.Read More...

The KSE 100-index of the Pakistan Stock Exchange (PSX) turned around Tuesday and witnessed bullish trend, gaining 487.39 points, with positive change of 1.11 per cent, closing at 44,563.59 points against 44,076.20 points on the last working day. A total of 221,502,765 shares were traded during the day compared to the trade of 238,440,085 shares the previous day whereas the price of shares stood at Rs10.088 billion against Rs11.317 billion the previous day. As many as 371 companies transacted shares in the stock market, 242 of them recorded gain and 110 sustained losses whereas the share price of 19 companies remained unchanged. The three top traded companies were Unity Foods Ltd with a volume of 33,874,028 shares and price per share of Rs32.06, Telecard Limited with a volume of 26,289,000 and price per share of Rs13.75 and Ghani Glo Hol with volume of 23,573,000 and price per share of Rs35.98. Rafhan MaizeXD witnessed maximum increase of Rs69.97 per share, closing at Rs9225 followed by Wyeth Pak Ltd, share prices of which increased by Rs34.65, closing at Rs1055.90. Nestle PakistanXD recorded maximum decrease of Rs115 per share, closing at Rs5610 whereas Pak TobaccoXD was runner up with the decrease of Rs89.99 per share, closing at Rs1300.Read More...

Cement sector posted massive growth of 40.41 per cent in April 2021. Total cement despatches during April 2021 were 4.943 million tonnes against 3.52 million tonnes despatched during the same month last fiscal year. According to the data released by All Pakistan Cement Manufacturers Association (APCMA), local cement despatches during the month of April 2021 increased to 4.066 million tonnes from 3.271 million tonnes in April 2020, showing a healthy increase of 24.29 percent. Exports also increased significantly by 252 percent, from 249,127 tonnes in April 2020 to 877,163 tonnes in April 2021. During April 2021, the north based mills despatched 3.377 million tonnes cement in domestic markets showing an increase of 15.33 percent over 2.928 million tonnes despatches in April 2020. South based mills despatched 688,239 tonnes cement in local markets during April 2020 registering a robust increase of 100% compared to the despatches of 342,594 tonnes in April 2020.Read More...

Owing to timely and prudent policies of the incumbent government, the country’s economy had been showing signs of recovery, with construction and manufacturing sectors in lead, however, the economic revival had once again been pitched against the stronger than ever third wave of Covid-19, official sources said on Tuesday. The economy had registered positive signs during first nine months of financial year (FY) 2020-21 as indicated by various economic indicators. The remittances grew by 26.2% from July 2020 to March, 2021 while the revenue collection by the Federal Board of Revenue grew by 10.9 % to reach Rs3.4 trillion in the first three quarters of the current financial year, according to the official data. The careful expenditure management and effective resource mobilization helped in containing the fiscal deficit within reasonable limit while primary balance continued to remain in surplus.Read More...