Morning Market Brief 18th Feb. 2021

The Benchmark KSE100 index had created a hammer on daily chart after facing rejection from a daily double top and a strong resistant trend line during last trading session. As of now same trend line is falling at 47,300pts for current trading session. For current trading session it's recommended to stay cautious because it seems that index would show some volatile moves during current trading session and a sharp recovery could be witnessed after a dip. It's expected that index would try to establish ground initially above 46,500pts while breakout below this region would call for 46,360pts and 46,060pts. While on flip side on its way to recovery index would face initial resistance between 46,940pts-47,100pts which would be followed by 47,350pts. Overall sentiment is mixed and index would remain in uncertain zone until it would not succeed either in closing above 47,500pts or below 46,000pts on daily chart. Meanwhile chances of an evening shooting star would start looming if index would not succeed in sustaining above 46,500pts and today's daily closing below 46,500pts would change sentiment completely.

Asian markets were set for sideways trade at Thursday’s open as lingering pandemic concerns pushed against stronger economic data, and with little firm direction from Wall Street. Australia’s benchmark S&P/ASX 200 index was down 0.1% in early trading, while Japan’s Nikkei 225 futures were up 0.05%. Hong Kong’s Hang Seng index futures were down 0.2%. The MSCI’s global stock index was up 0.04%. Strong retail sales out of the United States, coupled with new indications the Federal Reserve will maintain its accommodative stance and an ongoing push for further U.S. stimulus, helped drive expectations the world’s largest economy will continue to post gains coming out of the pandemic. The Dow Jones Industrial Average rose 0.29%, while the S&P 500 lost 0.03% and the Nasdaq Composite dropped 0.58%. But concern at the rapid spread of new variants tempered enthusiasm.Read More...

Auditor General of Pakistan Javaid Jehangir has said that all business processes are going to be computerised in one year to ensure quality audit reports. Department of Auditor General of Pakistan is going to computerise all its business processes within one year so that quality audit reports are produced, stated Auditor General of Pakistan Javaid Jehangir while inaugurating the 105th Intensive Training Programme (ITP) in Performance Auditing. The 55 representatives from 12 countries are participating in this training programme. Auditor General of Pakistan stressed the need for value addition in reporting methodology of audit observations. AGP remarked that DAGP is re-aligning itself on modern lines to cater for needs of its stakeholders including Parliament and Public Accounts Committee etc.Read More...

Former finance minister Miftah Ismail has said the power sector in Pakistan should move towards the privatisation in order to solve its long-standing issues. Ismail said this during a webinar titled: “Pakistan’s Power Policies—Ensuring Access and Affordability” on Wednesday. When asked if it would be difficult to do so, the former finance minister said it was a challenge but needed to be done nonetheless. He highlighted how there has been a governance failure for the past 30 years or so in Pakistan. “We keep repeating the same things and hoping for better results but it won’t happen. So I believe we should move towards a multiple buyer and multiple seller system,” he said. He pointed out that in 2014-15, PEMRA estimated the cost of installation of a gas plant at $700,000. “However, when we [the previous government] opened it up for bidding, the real figure came to around $550,000,” he said.Read More...

Parliamentary Committee on China-Pakistan Economic Corridor (CPEC) was Wednesday informed that work on Gwadar Fencing Project had been temporarily halted owing to reservations expressed by various segments of the society. The 32nd (in-camera) meeting of the Parliamentary Committee on China-Pakistan Economic Corridor (CPEC) was held under the chairmanship of Sher Ali Arbab. During briefing on Sust Border management framework, the Committee remarked that the world is increasingly moving towards complex economic interdependence. In 21st century trade, commerce, investment and connectivity are Pakistan’s strategic interests. The Committee recommended to the quarters concerned to decide about the lead ministry which will regulate border’s management framework, come up with viable proposals to open Sust border for whole year and shrug off all the odds and challenges faced at the border so that seamless regulation of trade and economic activities could take place there.Read More...

Pakistan has spent $4.6 billion on importing food commodities in seven months (July to January) of the current fiscal year (FY2020-21) to bridge the local shortages in the country. The country’s oil import has surged by 51.9 per cent to $4.6 billion in July to January period of FY2020-21 as compared to $3.05 billion in corresponding period of the previous year, according to the latest data of Pakistan Bureau of Statistics (PBS). Pakistan’s food import has increased by over 50 per cent in the month of January. The government allowed import of wheat and sugar to bridge the local shortages. The import of almost all essential food products - spices, palm oil, tea, milk etc - witnessed growth during the period.Read More...