Morning Market Brief 7th Jan. 2021

The Benchmark KSE100 index is moving in a bullish price channel since last week and it's heading towards expansion level of breakout of its previous triangle on hourly chart. Overall sentiment is bullish but it's recommended to stay cautious because index have entered into a volatile zone and it would react aggressively therefore it's recommended to post trailing stop loss on existing long positions and avoid new short sell positions until index would not give a clear reversal sign.. For current trading session index have initial resistant region ahead at 45,450pts where it's being capped by a strong horizontal resistant region while breakout above this region would call for 45,700ptsand 45,950pts regions. Meanwhile hourly and daily momentum indicators are still moving in uncertain region therefore it's expected that index could take a dip any time if it would face rejection from its resistant regions. While on flip side index would try to establish ground above 44,500pts in case of pressure where it would find support from a strong horizontal supportive region.

Bonds nursed losses and Asian stock markets rose on Thursday in anticipation of a big borrowing and big spending Democrat administration driving growth, following runoff elections that gave the party control of both houses of U.S. Congress.MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5% to just shy of a record high, led by jumps of more than 1.5% in South Korea’s chipmaker-heavy Kospi and Australia’s miner-and-bank heavy ASX 200. Japan’s Nikkei rose 2% to its highest since 1990. S&P 500 futures rose 0.6% and Nasdaq 100 futures rose 0.9% as markets seemed to shake off a late New York session fade when chaotic protests in Washington unnerved traders. [.N] “It’s basically a re-flation trade,” said Mathan Somasundaram, head of Sydney-based research firm Deep Data Analytics, who added that the Democrat sweep was unexpected by most investors and “changes a lot.”Read More...

Parliamentary Committee on CPEC Chairman has Wednesday said that Pakistan needs not to rely on China for technological transfer rather boost its capacity building and enhance the areas of research to encourage indigenous technological innovations and modernize its agriculture sector. 29th meeting of the Parliamentary Committee on China-Pakistan Economic Corridor (CPEC) was held in National Agriculture Research Centre, under the Chairmanship of MNA Sher Ali Arbab. Committee chairman was briefed by PARC Chairman regarding 10 years development targets under CPEC. The Committee was briefed by Ministry of National Food Security & Research Secretary and, Pakistan Agricultural Research Council Chairman regarding Pakistan Agricultural Research Council and other projects related to the agriculture sector.Read More...

Islamabad Chamber of Commerce and Industry (ICCI) has called upon the Federal Board of Revenue (FBR) to revise its policy for mandatory update of taxpayers’ profiles as it has created additional difficulties the business community. They said that it was discouraging the potential taxpayers from coming into the tax net. ICCI President Sardar Yasir Ilyas Khan said that about 2.3 million tax returns were filed in Pakistan, and one of the main reasons for the filing of low returns was the FBR’s tough laws for the taxpayers due to which many eligible taxpayers were preferring to stay away from coming into the tax net. He stressed that instead of simplifying the difficult tax laws, the Income Tax Ordinance was amended through Finance Act 2020 to make it mandatory for taxpayers to submit their profiles along with income tax returns, even though all personal data of taxpayers was provided in tax returns.Read More...

The Economic Coordination Committee (ECC) of the Cabinet on Wednesday has approved the import of additional wheat to buffer up stocks till the arrival of fresh crop. The ECC meeting, which was chaired by Federal Minister for Finance and Revenue Dr. Abdul Hafeez Shaikh, discussed the wheat issue in the country. Ministry for National Food Security and Research presented a detailed summary regarding provision of additional quantities of wheat to KP, AJ&K and Utility Stores Corporations (USC). The additional secretary, M/o NFS&R, gave a detailed presentation regarding availability of wheat stocks across the country. The ECC approved additional wheat allocation of 200,000 MT for KP, 80,000MT for AJ&K, and 220,000MT for USC from PASSCO, as requested. ECC also approved the import of additional wheat to buffer up stocks till the arrival of fresh crop after seeking detailed input from all concerned.Read More...

Pakistan FMCG Importers Association (PFIA) has urged Punjab Minister for Industries Mian Aslam Iqbal to ensure immediate installation of CCTV cameras and increased security in Sundar Industrial Estate (SIE) to save the industrialists from any valuable losses. In a letter to the minister, PFIA Vice President and member LCCI Standing Committee on FMCG Sector Muhammad Ejaz Tanveer claimed that the law & order situation in the Sundar Industrial Estate is not very satisfactory because of the thin security and absence of CCTV cameras. He said that the government should ensure increased security personnel twenty-four hours a day and installation of CCTV cameras to monitor and keep a check on elements involved in any unlawful activity. Ejaz Tanveer also drew attention towards the improper street-lighting system in the province’s one of the most modern and important industrial estates causing hardships for the industrialists as well as making it impossible to check any miscreants. Read More...