Morning Market Brief 7th jul. 2021

Technical Overview

The Benchmark KSE100 index had continued its bearish journey after completion of bearish correction of its last rally during last trading session and have given confirmation of its daily evening shooting star. As of now it's expected that index would remain under pressure and would continue expansion of its last bearish correction on hourly and daily charts. Hourly and daily momentum indicators are in bearish mode and it's expected that index initially would slide towards 47,150pts where its being supported by a descending trend line along with a strong horizontal supportive region and breakout below this region would call for 47,000pts and 46,900pts. While on flip side in case of bullish pull back index would face initial resistance at 47,500pts which would be followed by 47,730pts and 48,000pts. Overall sentiment would remain under pressure as long as index is trading below 48,300pts. Daily closing below 46,900pts would push index towards 46,500pts and 46,065pts this time for expansion of its recent bearish correction therefore it's recommended to stay cautious and post trailing stop loss on existing long positions.

Regional Markets

Shares of China EV maker Xpeng set to open up 1.8% in Hong Kong debut

Shares of Chinese electric vehicle maker Xpeng Inc are set to open up 1.8% from their initial public offering price in the company's dual primary listing debut in Hong Kong on Wednesday.The stock is set to open at HK$168 per share, versus the IPO price of HK$165. The percentage jump would compare with a 1.1% fall in the benchmark Hang Seng Index and 1.2% decline in the Hang Seng China Enterprises Index.Xpeng's New York-listed American Depository Shares were up 0.7% late on Tuesday at $44.05 each. One ADS is equivalent to two Hong Kong shares.Read More...

Business News

KPEZDMC starts one window operation to facilitate CPEC economic zones’ investment

China Pakistan Economic Corridor (CPEC) has already entered a crucial second phase in which cooperation in industrial development is vital to stimulate economic and employment opportunities in Pakistan besides making the country a regional trade hub. Though Covid has devastated global economy however Pakistan showed better economic indicators and industrial development during the fiscal year 2020-21. The provincial government of Khyber Pakhtunkhwa is making all-out efforts to materialize the special economic zones initiative to attract local and foreign companies for investment through offering them incentives and facilities.Read More...

Exports to China surged by 34 per cent to $2.33 billion in last fiscal year

Pakistan’s exports to China increased by 34 per cent to $2.33 billion in the last fiscal year. Pakistan’s exports to China have enhanced by 34 per cent to $2.33 billion in year 2020-21 as compared to $1.74 billion in the previous FY, increasing by $586 million. “I’m pleased to share that our exports have done quite well in our major markets. During FY 2021, our exports to China increased by 34% to $2.33 billion as compared to $1.74 billion in the previous FY, increasing by $586 million,” said Abdul Razak Dawood, Adviser to the Prime Minister on Commerce and Investment on Twitter.Read More...

Gas supply shortfall: Proactive SSGC efforts averted crisis situation

Recent gas supply issues emanating out of Annual Turn Around (ATA) of Kunnar-Pasakhi Deep (KPD) gas field and Engro LNG Terminal dry docking has been proactively managed by SSGC. At the start of the ATA crisis, it was projected that the gas supply situation would ease by around 9th of July. The company’s prompt approach throughout the episode, however, led to the normal supplies to the captive power units getting restored on the 4th of July followed by opening of CNG stations the next day. The easing of the situation would not have been possible without taking all the stakeholders into confidence in order to avert a crisis situation.Read More...

Pakistan raises another $1bn thru Eurobond issued in March

Pakistan on Tuesday raised additional debt of $1 billion through a tap issue of its recently issued three-tranche dollar denominated Eurobond that had fetched $2.5bn in March.The bond was subscribed in excess of $3bn for five, 10 and 30 years. Pakistan accepted $300m for five-year note at 5.875pc, $400m for 10-year bond at 7.125pc and $300m for 30-year paper at 8.450pc.Pakistan had adopted a programme-based approach with the registration of Global Medium-Term Note (MTN) programme, which allows it to tap the market regularly and at a short notice, Fahad Rauf, head of research at Ismail Iqbal Securities, told Dawn.Read More...