Morning Market Brief 12th jul. 2021

Technical Overview

The Benchmark KSE100 index had faced rejection from a daily double top along with a descending trend line during last trading session and completed 50% correction of its last bullish pull back on hourly chart during last trading session. As of now it's expected that index would try to establish ground above a horizontal supportive region which falls at 47,330pts along with an ascending trend line on daily chart which falls at 47,410pts therefore it's recommended to stay on long side and try to add long positions with strict stop loss of 47,200pts. It's expected that index would try to target 47,780pts initially while breakout above that region would call for 47,900pts and 48,100pts. While on flip side supportive regions are standing at 47,350pts and 47,200pts but breakout below these regions would call for 46,900pts. Overall index would remain range bound until it would not either succeed in closing above 48,300pts or below 46,900pts on daily chart.

Regional Markets

Asia shares enjoy relief rally, but hurdles ahead

Asian shares were enjoying a relief rally on Monday as record highs on Wall Street and policy easing in China helped calm some of the recent jitters on global growth, though plenty of potential pitfalls lay ahead this week.In the United States, inflation data could provide a scare ahead of testimony by Federal Reserve Chair Jerome Powell on Wednesday and Thursday, where markets will be hyper-sensitive to any talk of early tapering.The earnings season also kicks off with JP Morgan, Goldman, Citigroup and Wells Fargo among those reporting.China releases figures on economic growth, trade, retail sales and industrial output amid concerns they could underwhelm given the sudden easing in policy last week.Read More...

Business News

PSMA, govt still at loggerheads over track & trace system in sugar industry

The Federal government and Pakistan Sugar Mills Association (PSMA) are still at loggerheads over the mode of introduction of track & trace system in sugar industry as PSMA has proposed printing of local QR code on sugar bag instead of imported stamps.“The imported QR printed tax stamps affixation, besides being expensive have complicated affixation process that will peel off as only Hermetical Sealing Fusion Technology can be applied on polypropylene bags. Because of the aforesaid fact, these stamps have never been used on polypropylene sugar bag,” said a letter written by Pakistan Sugar Mill Association to Member IR Operation Federal Board of Revenue.Read More...

Pakistan earns $503.91m by exporting transport services in 10 months: PBS

Pakistan earned $503.910 million by providing different transport services in various countries during the first ten months of fiscal year (2020-21) as compared to the corresponding period of last year. This shows decrease of 24.46 per cent as compared to $667.040 million earned through provision of services during the corresponding period of fiscal year (2019-20), PBS reported. During the period under review, the exports of sea transport services however witnessed increased of 56.56 per cent, by going up from $ 44.250 million last year to $ 69.280 million during the period under review. Among the sea transport services, the exports of freight services increased by 1.37 per cent from $27.780 million last year to $ 28.160 million whereas the exports of other sea transport services also rose by 149.67 per cent from $ 16.470 million to $ 41.120 million current year, the PBS data revealed.Read More...

Govt plans tax concessions for LPG storage, production

Amid criticism from stakeholders over 'poor' consultative process, the government on Sunday indicated tax and duty concessions for storage and enhanced production of liquefied petroleum gas (LPG) with relaxations from procurement rules to the public sector entities to enable them to compete with private sector in import and sale of LPG.At a consultative session on proposed new LPG policy, various local stakeholders, including those in public and private sectors, bemoaned the ‘haste’ in which they were called to the petroleum division on a holiday on a short notice and said it created an atmosphere of suspicion.Read More...

Imran okays new bilateral investment treaty template

Prime Minister Imran Khan has approved the new Bilateral Investment Treaty (BIT) template whereby any dispute will now be remedied through local arbitration, disclosed Board of Investment (BoI) Secretary Fareena Mazhar while talking to a group of journalists on Sunday.Ms Mazhar said the government had been facing difficulties in finalising investment treaties with some countries due to the Reko Diq case.She said the new BIT template has been developed in consultation with all the stakeholders and with the active assistance of law and justice division and the attorney general of Pakistan.Read More...