Morning Market Brief 19th Mar. 2021
Technical Overview
The Benchmark KSE100 index have created a bearish engulfing pattern on daily chart during last trading session after facing rejection from a strong horizontal resistant region where 61.8% correction of its last bearish rally also have been completed, it's recommended to stay cautious as index may start expansion of its correction towards 39,500pts on longer run if it would succeed in closing below 43,900pts this time. Meanwhile daily momentum indicators have started losing strength which would add pressure on index as well. For current trading session it's recommended to remain on selling side with strict stop loss. It's expected that index would initially start sliding towards 44,500pts where a horizontal supportive region would try to provide support against current bearish sentiment but breakout below this region would call for 44,000pts-43,900pts region. While o flipside in case of bullish pull back index would face initial resistance at 45,000pts which would be followed by 45,200pts and 45,500pts. Index may start a free fall towards 42,500pts if it would succeed in closing below 43,800pts on daily chart.
Regional Markets
Asia stocks spooked by spike in yields, oil sell-off
Asian share markets eased on Friday as a spike in global bond yields soured sentiment toward richly priced tech stocks, while a stampede out of crowded positions in crude oil caused the sharpest setback in months.Having plunged 7% overnight, Brent crude futures were down another 38 cents at $62.90 a barrel, while U.S. crude shed 35 cents to $59.65. [O/R] The retreat wiped out four weeks of gains in a single session and might mark the end of a five-month bull run. Equities were also choppy as a pullback on Wall Street knocked Japan’s Nikkei down 0.7% and South Korea 1%. MSCI’s broadest index of Asia-Pacific shares outside Japan followed with a fall of 0.5%. Nasdaq futures edged up 0.1%, after a sharp 3% drop overnight, while S&P 500 futures added 0.2%.Read More...
Business News
Govt fears wheat shortage in next season, plans import
The federal government authorities have expressed apprehension that country might once again face wheat shortage in next season as it had happened in last year. The National Assembly’s Standing Committee on Commerce and Textile, which met under the chair of Naveed Qamar, has discussed the import of wheat. Chairman Trade Corporation of Pakistan (TCP) informed the committee that Ministry of National Food Security & Research (MNFSR) has already warned of wheat shortage in the country in next season. He said that TCP is importing wheat to bridge the gap in local market. Chairman of the Committee has expressed concerns over the shortage of wheat in the country. He said that there is always an interest of some people in importing commodities from other countries. He asked whether the government would continue to import wheat. The government should give incentives to the farmers of the country to increase the wheat production in order to bridge its shortfall. He blamed the government’s policies for wheat shortage. Read More...
SCCI for allowing business activities on weekends
President, Sarhad Chamber of Commerce and Industry, Sherbaz Bilour has expressed reservations over issuance of government’s notification regarding closure of businesses on Saturday and Sunday, and urged the authorities to allow trading on weekends. Chairing a meeting of traders’ community here at the chamber house on Thursday, Sherbaz Bilour said that the restriction to close trade and commercial hubs, including bazaars, wedding halls and markets by 8 pm and complete suspension of businesses on Saturday and Sunday, can further worsen the situation. SCCI senior vice president, Engineer Manzoor Elahi, vice president Junaid Altaf, office bearers to different trade bodies and bazaars unions in a large number were present during the meeting.Read More...
Iranian envoy calls for expanding investment, trade ties with Pakistan
Deputy Head of Iranian Mission in Pakistan, Mohammad Surkhabi here on Thursday stressed the need for further cementing bilateral trade, investment and cultural ties between both the countries which would be mutually beneficial for the people of two counties. Talking to a delegation of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), led by its Chairman Qurban Ali, Surkhabi vowed to extend full cooperation to Pakistani private sector for the promotion of investment and trade relations between both the countries. He said relationship between Pakistan and Iran was of special importance, and enhanced relations between the two countries would also help in closer trade relations, adding that the two countries have a larger business markets, besides geo-strategic competitive advantages.Read More...
2000 investors to set up industrial units in Rashakai SEZ
Rashakai Special Economic Zone (SEZ) under CPEC is getting encouraging response, and for 3000 Acres Zone, more than 2000 investors have shown their interest so far in setting up their units. Federal Minister for Planning, Development and Special Initiatives, Asad Umar chaired a progress review meeting on the development and groundbreaking of Rashakai Prioritized Special Economic Zone under CPEC Framework here on Thursday. Provincial Finance Minister KP Taimur Khan Jhagra and senior officials of the Federal & Provincial governments attended the meeting. The meeting was briefed on the progress of work at the SEZ. It was informed that the camp office at the site had been established, while the first industrial unit had started its construction work within the Zone. The meeting was informed that Rashakai Zone was getting very encouraging response as more than 2000 investors had indicated in setting up their units in the SEZ. Read More...
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