Morning Market Brief 6th May 2021

The Benchmark KSE100 index had continued its bullish journey during last trading session and recovered till 61.8% correction level of its last bearish rally meanwhile confirmation of daily morning star have taken place which indicates that index may continue its bullish journey, but it's recommended to stay cautious because index is still being capped by a strong horizontal resistant region at 45,200pts while breakout above this region would call for 45,500pts where another resistant object would also cap bullish sentiment. On flip side index would try to establish ground initially above 44,600pts in case of rejection from its resistant regions while breakout below this region would call for 44,130pts in coming days. Currently daily momentum indicators have changed their direction towards bullish side and these would try to pump some fresh volumes but index needs to close above 45,200pts for a clarity in trend. Meanwhile being last trading day of the week and a long week of holidays ahead some selling pressure could be witnessed from leverage investments therefore it's recommended to post trailing stop loss on existing long positions because if index would not succeed in penetration above 45,200pts then hourly momentum would start losing strength.

 

KP govt proposes 60 new agri, livestock projects worth Rs15b for budget 2021-22

The Khyber Pakhtunkhwa government has proposed about 60 new agriculture, fishery and livestock projects worth Rs15 billion for budget of financial year 2021-22 under the landmark Prime Minister Agriculture Emergency Programme (PMAEP) in Khyber Pakhtunkhwa. These projects are exclusively designed to fulfill the food, meat and milk requirements of the ever growing population of the province and strengthening of agriculture, fisheries and livestock sectors in the merged areas. An official of KP Agriculture Department told APP that these projects would be executed both under ADP and PMAEP. PMAEP worth over Rs309 billion has been extended to merged areas to bring its vast unutilised land under agriculture, livestock, poultry and fisheries cover. KP government has developed an inclusive Food Security Policy under which a comprehensive strategy prepared to fulfill people’s food requirements in the wake of challenges posed by climate change.Read More...

The Economic Coordination Committee (ECC) of the Cabinet on Wednesday has approved the payment of first installment to 35 independent power producers (IPPs) out of total 47. Federal Minister for Finance and Revenue, Shaukat Fayyaz Ahmed Tarin chaired the ECC meeting. Power Division presented a summary before the ECC regarding release of first installment of payment to IPPs. Secretary Power Division briefed the committee about the recommendations of the sub-committee constituted during ECC last week. The ECC approved payment of first installment to 35 IPPs out of total 47 whereas payment to the remaining 12 IPPs (under Power Policy 2002) may be withheld owing to the NAB investigation. It was decided that about Rs 90 billion worth of first payment to IPPs set up under the 1994 power policy and before be cleared without any further delay. However, the ECC decided to withhold remaining amount of about Rs 58-60 billion to IPPs under the 2002 power till the clearance of the National Accountability Bureau (NAB).Read More...

The exchange rate of Pakistani rupee strengthened by 21 paisas against the US dollar in the interbank trading on Wednesday and closed at Rs153.03 as compared to the previous day’s closing of Rs153.24. According to Forex Association of Pakistan, the buying and selling rates of dollar in the open market were recorded at Rs153.1 and Rs154.1 respectively. Similarly, the price of euro depreciated by 63 paisas and closed at Rs183.44 against the last day’s trading of Rs184.07, the State Bank of Pakistan reported. The Japanese Yen lost one paisa to close at Rs1.39, whereas an increase of 14 paisas was witnessed in the exchange rate of British Pound, which was traded at Rs212.56 as compared to its last closing of Rs212.42.Read More...

Silting has caused over 40 per cent loss to water storage capacity of Tarbela dam so far. “As per Hydrographic Survey 2017, water storage capacity of Tarbela Dam has been reduced by over 40 per cent due to silting in the reservoir”, official sources told APP here Wednesday. They said since operation, the live and gross storage capacities of Tarbela reservoir had reduced by 37.524 per cent and 40.58 per cent respectively. They said inflow of sediment was a natural phenomenon and could not be prevented. However, construction of Diamer Bhasha dam would help reduce the inflow of silt into Tarbela dam and it would also enhance the life of Tarbela dam up to 35 years, they said. They said Wapda had conducted sedimentation studies in the years 1987, 1991, 1997, 1998, 1999, 2007, 2013 and 2014 for evaluation of possibilities of de-silting Tarbela reservoir. Quoting studies they said, sediment flushing was uneconomical, technically risky, impacts on the existing infrastructure would be overwhelming resulting into increased variation in bed profile of downstream river system would impact on barrage operations with increased sediment entering the canals.Read More...