Morning Market Brief 11th jun 2021

Technical Overview

The Benchmark KSE100 index have created a bullish engulfing pattern on daily chart during last trading session after bullish breakout of its descending price channel on hourly chart, meanwhile 61.8% correction of its last bearish rally have been completed on hourly chart and now it's expected that index would try to retest its resistant regions during current trading session which falls between 48,530pts-48,660pts. It's recommended to stay cautious until index succeeds in closing above 48,600pts because if index would face rejection from its resistant regions then bearish rally would be more sharp and index may succeed in sliding below 48,000pts. Daily and hourly momentum indicators are moving in uncertain region and it's expected that index would show some volatile moves during current trading session between 48,530pts to 48,000pts. Bullish breakout above 48,600pts would need some healthy volumes as index would give bullish breakout above this region then it would considered breakout of its ascending wedge in bullish direction on weekly chart which may lead index towards 50,300pts. While on flip side in case of reversal index would initially try to establish ground above 48,000pts but breakout below this region would call for 47,730pts and 47,500pts.

Regional Markets

Japan minister says he never asked adviser to contact Toshiba shareholders

Japan's trade minister on Friday said he never directed an adviser to contact Toshiba Corp shareholders after a report accused his ministry of colluding with company executives to pressure stockholders to fall in line with its management plans.The Ministry of Economy, Trade and Industry is waiting for Toshiba to respond to the report from independent investigators, Hiroshi Kajiyama said at a regular press briefing.The report says Toshiba's management asked METI to help counter activist overseas stock owners at its annual general meeting last July.The shareholder-commissioned report released on Thursday also alleges that Prime Minister Yoshihide Suga, when he was chief cabinet secretary last year, verbally encouraged that pressure during a meeting with a senior Toshiba executive.Read More...

Business News

SECP warns companies against illegal deposit taking from public

style="text-align: justify;">The Securities and Exchange Commission of Pakistan (SECP) has clarified that mere registration of a company with SECP does not authorise it to seek deposits from the general public.Deposit taking by companies other than banking companies is illegal in terms of section 84 of the Companies Act 2017. Furthermore, financial services including car financing, leasing, acceptance of deposits, house financing etc. can only be offered by specialized companies holding valid license and regulatory approvals. General public is advised in their own interest to be careful, not to deal and invest in illegal schemes offered by companies involved in any illegal deposit taking, unauthorized investment or Multilevel Marketing (MLM). The SECP while exercising its regulatory powers to curb illegal deposit taking in the country has taken stern actions against Shaukat Marwat Group comprising of the following companies found involved in illegal deposit taking.Read More...

Thermal power generation becomes largest source of power generation

Thermal power generation has become the largest source of power generation in national electricity generation mix as the shares of hydro, nuclear and renewable power have declined in FY2021 as compared to FY2020.According to Pakistan Economic Survey 2020-21, currently thermal has the largest share in electricity generation and its percentage share in FY2021 has increased by almost one percent as compared to FY2020.In period from July to April 2021, the share of hydel has decreased to 30.52 percent from 30.92 percent during the same period of last fiscal, while the share of thermal (RLNG, RFO, coal and natural gas) increased to 59.42 percent from the previous 58.43 percent, while the nuclear share decreased from 8.24 percent to 7.82 percent. The share of renewable decreased from 2.41 percent in July to April 2020 to 2.23 percent during the same period of current fiscal.The installed capacity of the country increased from July- April 2020-21 to 37261 MW from 35972 MW during the same period of last fiscal.Read More...

Continuously rising public debt reaches Rs38 trillion by end of March

Pakistan’s total public debt is continuously increasing as it has recorded at Rs38 trillion by the end of March this year. Loan was taken mainly to finance the fiscal deficit.The breakup of Pakistan’s total public debt showed that domestic debt is Rs25.55 trillion and external debt is Rs12.45 trillion by the end of March 2021. The overall debt has increased by Rs1.607 trillion during first nine months of current fiscal year, according to the latest Economic Survey of Pakistan. Federal Minister for Finance and Revenue Shaukat Tarin on Thursday informed the media that country’s debt is increasing to bridge the fiscal deficit of the country. He said that Pakistan’s debt has increased by only Rs1.7 trillion in ongoing fiscal year as compared to Rs3.7 trillion increase in the preceding year. Sharing further details, he said that public debt has enhanced and external debt has reduced by Rs700 billion in current fiscal year. Tarin said that interest payment has increased to Rs3 trillion from Rs1.5 trillion mainly due to the currency depreciation and increase in interest rate before Covid-19.Read More...

Russia gives go-ahead to rice import from Pakistan

Russia has lifted a ban on import of rice from Pakistan.Based on the guidelines, Russia has allowed import of rice from four Pakistani enterprises from Friday (today).The decision was based on implementation of phytosanitary measures proposed by the Ministry of Food Security Department of Plant Protection (DPP) of Quarantine Division.Russia had carried out inspection in February last year.Trade Minister Pakistan Embassy Russia Nasir Hameed took up the issue with the host country and pursued the matter with the Russian authorities.A statement issued by the Ministry of Food Security said that Deputy Director Technical Quarantine of DPP Sohail Shahzad had been negotiating with Russia for the past year for lifting of ban on import of rice from Pakistan.Read More...