Morning Market Brief 7th Dec. 2020

The Benchmark KSE100 index is moving in an upward price channel after bullish breakout of its previous daily triangle and right now it’s heading towards resistant tend line of that channel which falls on 42,650pts. As of now it’s expected that index would try to continue its bullish journey during current trading session but some kind of volatility can be witnessed if index would face rejection from its resistant regions. Mean while hourly momentum indicators have changed their direction towards bearish side which indicates that index could take a slight dip on intraday basis, daily stochastic also have changed its direction towards bearish side which is going to increase uncertainty among investors. In case of rejection from its resistant regions index would try to find support at 41,850pts where a strong horizontal supportive region would try to provide ground against bearish pressure while breakout of this region would push index further downward towards 41,500pts and 41,350pts. It’s recommended to stay cautious and trade with strict stop loss on both sides because index have reached its major resistant region which falls between 42,500pts to 42,880pts where it would face resistance from its weekly double top. Breakout of this region would be considered most important because it falls on a monthly triple top. Swing trading could be beneficial until index would not succeed in either closing above 43,500pts or below 41,500pts on daily chart.

Asian shares retreated from a record peak on Monday after a Reuters report the United States was preparing to impose sanctions on some Chinese officials highlighted geopolitical tensions, while oil prices fell on surging virus cases.MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3% following four straight sessions of gains. It is still up about 16% so far this year, the best since a 33% jump in 2017. China’s blue-chip index dropped 0.6% while Hong Kong’s Hang Seng was down 1.2%. Japan’s Nikkei declined 0.3% while Australian shares were up 0.5%. E-Mini futures for the S&P 500 were down 0.1% after starting higher.Read More...

The Pakistan Readymade Garments Manufacturers & Exporters Association on Sunday proposed the Prime Minister Imran Khan declare Sialkot as a Value-added City, as it is a hub of SME sector, contributing $2.5 billion foreign exchange by adding a multi-fold value addition in garments, sports goods, surgical goods, musical devices, cutlery, leather garments, gloves, handmade badges and military uniforms. Sialkot is the only city in Asia where its business community has built its airport and now it is going to launch a private airline-‘Airsial’, this will help spur export growth from this city. Read More...

About 838,770 metric tonnes of rice valuing $499.485 million exported during first four months of the current financial year as compared the exports of 1,176,228 metric tonnes worth $ 633.797 million of the corresponding period of last year. According to the data of Pakistan Bureau of Statistics, rice exports from the country during the period from July-October, 2020-21 decreased by 21.19 per cent as compared to the exports of the same period of last year. During the period under review about 170,729 metric tonnes of Basmati rice worth $168.745 million exported as against the exports of 283,458 metric tonnes valuing 259.099 million of the same period of last year. The exports of basmati rice during the period under review reduced by 34.87per cent as compared the exports of the same period of last year, the data revelled. Read More...

The Friends of Business and Economic Reforms (FEBR) on Sunday called for harmonization between Federal Board of Revenue (FBR) and Punjab Revenue Authority (PRA) intending to avoid double taxation, as both tax collecting agencies have started sending notices to the industry to collect the same tax. FEBR President Kashif Anwar said that the FBR and the PRA simultaneously have been pushing the manufacturers to submit ‘toll manufacturing sales tax’ and ‘workers welfare fund’. So, the manufacturers, who have been squeezed between the federal as well as the provincial tax collecting agencies, decided to move the court to avoid the undue burden of double taxation.Read More...

Exploration and Production (E&P) companies have produced around 8,543,761.66 Barrel (BBL) oil and 64,967.32 Million Cubic Feet (MMCF) gas from five fields of Karak district of Khyber Pakhtunkhwa from July 2019 to May 2020. During the 11 months, the companies extracted 4,893,536 BBL oil and 27,783.97 MMCF gas from the Nashpa field, 142,953.95 BBL oil and 8,273.38 MMCF gas from Manzalai field, 570,420.42 BBL oil 4,322.14 MMCF gas from Makori Deep field, 2,931,241.39 BBL oil 24,507.79 MMCF gas from Makori East field and 5,609.90 BBL oil 80.04 MMCF gas, according to an official document available with APP. Since 1977, as many as 35 wells had so far been drilled in the Karak district mainly by three E&P companies including Oil and Gas Development Company Limited, MOL and TEX, out of which 11 were exploratory, 24 appraisal and development wells. Read More...