Morning Market Brief 12th April. 2021
Technical Overview
The Benchmark KSE100 index have given confirmation of its bullish engulfing pattern on daily chart during last trading session therefore it's expected that it would try to continue its bullish journey towards 45,5000pts during current trading session but its recommended to stay cautious because index is being capped by a resistant trend line along with a horizontal resistant region between 43,250pts-43,375pts therefore index may face some selling pressure between this region but breakout above this region would call for further advance. On flip side in case of rejection from its resistant regions index would try to find support at 44,800pts from a strong horizontal supportive region while breakout below this region would call for 44,500pts and 44,200pts. Currently sentiment would remain bullish until index would not succeed in penetration below 44,500pts on daily chart but this bullish sentiment would need some fresh volumes to gave a breakout of 45,500pts and 46,200pts. It's recommended to trade with trailing stop loss on existing long positions because in case of rejection from its resistant regions index would start sliding downward more aggressively.
Regional Markets
Asia shares slip into earnings season, U.S. data deluge
Asian shares faltered on Monday as investors wait to see if U.S. earnings can justify sky-high valuations, while bond markets could be tested by what should be very strong readings for U.S. inflation and retail sales this week.MSCI’s broadest index of Asia-Pacific shares outside Japan was off 0.6% in slow trade. Tokyo’s Nikkei edged down 0.5%, while South Korean stocks were near flat. Chinese blue chips eased 0.9% ahead of a rush of economic figures from the country. Investors were anxious to see how shares in Alibaba Group Holding Ltd fared after China slapped a record 18 billion yuan ($2.75 billion) fine on the e-commerce giant. Reverberations could be felt beyond China as over a third of the stock is held by U.S. investors, and given the stock makes up more than 8% of the MSCI EM index. Some felt the decision was already in the share price.Read More...
Business News
Montenegro offers investment based citizenship to Pakistanis
Following the launch of their much-awaited new neighbourhood, Boka Place, Porto Montenegro is introducing itself to the people of Pakistan via Montenegro’s Citizenship by Investment Programme (CBI). Courtesy of Kerzner International, Porto Montenegro’s latest development will house the world’s first SIRO hotel, bringing a revolutionary new hospitality brand to Porto Montenegro, with fitness and wellbeing at its core. SIRO will offer an immersive living experience to guests and residents, with a wellness-focused approach to health and fitness, appealing to modern, global lifestyles. The hotel will feature a cutting-edge fitness club, recovery lab, dedicated space for yoga and meditation, swimming pools and nutrition-led dining, complementing life at Boka Place and its relaxed new stance on luxury living. Scheduled for completion in 2023, Boka Place combines understated luxury with adventure and creative fulfillment. From bustling bars and bistros, elegant boutiques, live music and family entertainment, the village’s new vibrant and eclectic urban hub marries so well with the SIRO brand, with its focus on activity, friendly spirit, and transformative wellness.Read More...
Pakistan may increase annual exports to $88 billion: World Bank
Given Pakistan’s observable characteristics in terms of economic size, level of development, remoteness, and factor endowments, it is estimated that Pakistan’s potential annual exports are at $ 88.1 billion, about four times the actual current level, World Bank said in its recent report “Pakistan Development Update.” This large gap between actual and potential exports, or “missing exports,” places Pakistan among the top quartile of the distribution of countries with missing exports. Were Pakistan’s exporters to tap into that potential, the resulting export-to-GDP ratio would place the country at around the middle of the distribution of countries according to export orientation. To reach that point, Pakistan’s exports would need to grow at the same rate as Vietnam’s for 10 years, or Bangladesh’s for 13 years.Read More...
Punjab govt’s sugar rate ceiling draws CCP displeasure
While price manipulation by the private sector is against the law, the Competition Commission of Pakistan (CCP) has pointed out that the recent move by the Punjab government to fix the sugar price too should be avoided. The commission in its Policy Note, issued on Saturday, advised the government to deregulate the sugar industry to promote free trade mechanisms. Referring to the Punjab government circular of fixing of the maximum retail price of sugar at Rs85 per kg, the CCP observed that since Punjab is the only province to set a rate ceiling, one immediate effect could be that sugar could move to other provinces where no price ceiling is in place and it can command a higher market price.Read More...
Italian gas company keen to invest in Pakistan, says Envoy
Leading Italian energy and gas company, Snam S.p.A has shown keen interest to invest in country’s power sector, Ambassador of Italy to Pakistan Andreas Ferrarese said. Talking to APP here, the ambassador said that the company representatives plan to visit the country in near future and join those Italian companies which already have an investment or around $1.5 billion in the country’s energy sector. The ambassador informed that Snam S.p.A is an Italian energy infrastructure company, which wants to bring investment in energy sector including compressed natural gas (CNG) and liquefied natural gas (LNG) to enhance the local capacity in this sector. Andreas Ferrarese said that green economy, transfer of technology for industrial sector including textiles and agro industry, construction sector, education and health are major areas of focus to extend the bilateral cooperation. Read More...
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