Morning Market Brief 9th Dec. 2020

The Benchmark KSE100 index have got support from a strong horizontal supportive region during last trading session and have succeeded in recovering above its major supportive region of 42,000pts after a dip during last trading session . As of now hourly momentum indicators are still bearish because hourly stochastic and MAORSI have generated fresh bearish crossovers therefore it’s expected that index may face some pressure on intraday basis which may push index below 42,000pts meanwhile daily stochastic is in bearish mode and it would try to add pressure on index once it would succeed in sliding below 41,500pts on daily closing basis.. Overall sentiment would remain mixed and a volatile session could be witnessed between 41,850pts to 42,350opts, while breakout of either side would push index for further 200-300pts in respective direction. It’s expected that index would try to recover after an intraday dip therefore buying on dip with strict stop loss of 41,500pts is recommended, initially index would face resistance at 42,350pts while breakout above that region would call for 42,500pts and 42,860pts. Bollinger band have squeezed and have become flat on hourly chart therefore it’s expected that index would start a rally in either direction during current trading session therefore it’s recommended to stay cautious and post trailing stop loss on existing positions.

Asian shares rose to a record high and U.S. stock futures gained on Wednesday as investors tracked positive news on COVID-19 vaccines and ongoing efforts to launch more fiscal stimulus.MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.51%. At one point the index reached 646.10, an all-time peak. MSCI’s gauge of stocks across the globe also hit a record high. Australian shares gained 0.69%. Japan’s Nikkei rose 1.01% to approach a 29 1/2-year high. Sentiment got an added boost after Japanese data pointed to a rebound in capital expenditure. Shares in China rose 0.15%. South Korean stocks also jumped by 1.26% to trade near a record high.Read More...

Cargill and Fauji Foundation have entered a long term strategic partnership in Pakistan to strengthen agricultural supply chain in the country. With this investment, Cargill has taken a minority equity stake in Fauji Akbar Portia Marine Terminal Limited (FAP), Pakistan’s leading bulk terminal, and will handle grains, cereals, rice, oilseeds and fertilizers at Port Qasim. Fauji Foundation, through this partnership with the world’s leading agriculture company, will transform FAP’s supply chain to enhance overall value for all stakeholders including suppliers, customers, employees and shareholders. This is Cargill’s first investment into Pakistan, after the strategic intent announced in January 2019 and reflects its long-term commitment to the country. Read More...

Pakistan on Tuesday said that its exports for the first time have crossed the $400 million to the United States (US). “I am glad to share that exports of Pakistan to US during the months of Oct & Nov 2020 stood at USD 430 million & USD 437 million respectively. This is the first time that our exports to the US have crossed 400 million dollars mark in a month,” said Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood on Tuesday. He said that it is a great achievement by our exporters. He encouraged them to market their exports to US aggressively in order to capture a greater share of the market. Earlier, Pakistan’s exports of goods and services to United States of America (USA) witnessed a decrease of 0.57 per cent during the first quarter of current financial year (2020-21) as compared to the corresponding period of last year. Read More...

The Lahore Chamber of Commerce & Industry on Tuesday called for continuous gas supply with full pressure to the industries. In a meeting with senior managers of SNGPL Ejaz Ahmad Chaudhry and Syed Jawad Naseem, LCCI Vice President Tahir Manzoor Chaudhry said that most of the industrial units use gas as a major source of energy for their production. He said that unavailability of gas or low pressure would result in low production, unemployment of daily wagers and delay in export consignments. He said that low gas pressure is like non provision of gas as it fails to run heavy industrial machinery. It hurts industry badly therefore the authorities should take all steps to keep the industrial wheel moving. He said that at a time when country is struggling to boost its exports, unavailability of gas to the industrial sector would play a devastating role.Read More...

Pakistan for the first time has become one of the five countries in the world with the most investment in the first half-year of 2020, a World Bank report said. “Pakistan had the fourth-highest investment commitments--a new entrant to the top five countries this year—with $1.9 billion of investment commitments, accounting for 0.69 per cent of GDP,” the Private Participation in Infrastructure (PPI) 2020 Half Yearly Report said. The report had termed the current year’s Private Participation in Infrastructure as unprecedented because of COVID-19 which has brought many sectors, including infrastructure, to a near standstill. Since the beginning of 2020, existing infrastructure projects were delayed or cancelled due to supply chain disruptions, travel and shipping restrictions, and other obstacles.Read More...