Morning Market Brief 15th Jun 2022

Technical Overview

The Benchmark KSE100 index had established ground above a horizontal supportive region during last trading session and tried to bounce back towards positive side but it still have not succeeded in penetration above its initial resistant region of 41,300pts therefore it's recommended to stay cautious and post trailing stop loss on existing long positions. For current trading session it's expected that index would try to start the day with a positive note but later on it may face some pressure if it would not succeed in penetration above its initial resistant region, while breakout above this region would call for 41,550pts. On flip side index have supportive region at 40,775pts where bulls would try to pump some fresh volumes but breakout below this region would call for 40,200pts and 39,500pts.

Asia shares subdued, dollar on a high as Fed looms

Asian markets were in a pensive mood on Wednesday as shell-shocked investors waited to see just how aggressive the Federal Reserve would be on rates, with many fearing drastic action would risk tipping the world into recession.Treasury yields hit decade highs and the dollar a 20-year peak as futures implied it was near certain the Fed would hike by 75 basis points to a range of 1.50-1.75% later on Wednesday.That would be the biggest increase since 1994, and markets already have rates reaching an eye-watering 3.75-4.0% by the end of the year."Against a backdrop of sky-high inflation, rising rates, and growing recession concerns, the S&P 500 has had its worst start to the year since 1962," noted analysts at Goldman Sachs."A likely coming peak in inflation is probably not sufficient to see the bottom, and that similar past drawdowns have only ended when the Fed has shifted towards easier policy.Read More...

Business News

CM Murad Presents Rs1.714 Trillion ‘Tax-Free’ Sindh Budget

Sindh Chief Minister Syed Murad Ali Shah, who also holds the portfolio of Finance, tabled Rs1.714 trillion budget with special focus on social protection and economic sustainability initiatives for the next financial year 2022-23 amid rumpus and brawl between opposition and treasury members. CM Murad presented 10th budget of the provincial government consecutively as he was interrupted by PTI lawmakers who had gathered around him and chanted slogans against his PPP party. In his speech, Syed Murad Ali Shah announced package for the poor of the province. He also announced 15 percent increase in salaries of provincial government employees from 1st July this year by merging all the adhoc relief allowances from 2016 to 2021 in basic pay and introducing new and revised pay scale.He announced that disparity allowance at the rate of 33 percent of basic pay will be paid to provincial government employees from PBS-1 to BPS- 16 and 30 percent to the employees from PBS-17 and above.He also announced five percent increase in pensions of retired employees.Syed Murad Ali Shah announced up gradation of post of police constables from BPS-5 to BPS-7.Read More...

No Evidence Of Any Conspiracy Against Previous Govt: DG ISPR

Director General of the Inter-Services Public Relations (ISPR) Major General Babar Iftikhar said Tuesday that both the National Security Committee’s meetings were told in explicit words that there is no evidence of conspiracy.Talking to a private news channel on Tuesday, he said freedom of expression is the right of everyone, but no one should distort the facts and resort to lies. He said Pakistan and China have strong strategic and defense ties and the security of China Pakistan Economic Corridor has not been reduced.The military’s spokesperson lamented that propaganda was initiated against the army and the military leadership on social media. “[They were] briefed that there was no conspiracy or evidence of any kind [against the then government], nothing like that happened. Participants were told in detail that there was no evidence of any conspiracy,” said the DG ISPR.Read More...

Terror financing charges against NBP withdrawn

The National Bank of Pakistan (NBP) has won a high-profile terror-financing case in New York’s Federal Court, avoiding a potential bankruptcy.Media reports and diplomatic sources said the plaintiff, Harold Brown Sr, withdrew the case, dropping all charges against the bank.NBP officials in New York and Washington, however, were mysteriously silent on this major win.There was no one in the NBP’s main office in New York, except a receptionist, and the branch office in Washington had no information.The bank would have faced the grim prospect of going into bankruptcy had the decision gone against it.The case against NBP was being handled by the International Disputes Unit of the Attorney General’s Office. Earlier this year, the US Federal Reserve Board had announced a $20.4 million penalty against the NBP.Read More...

EK-Electric to extract Rs26bn more from Karachiites

The National Electric Power Regulatory Authority (Nepra) on Tuesday allowed K-Electric to raise about Rs26 billion through Rs5.28 per unit additional fuel cost adjustment (FCA) from its consumers in July and about Rs3.90 per unit additional cost recovery under quarterly tariff adjustment (QTA).Separately, the management of KE assured the Karachi-based parliamentarians to address the loadshedding crisis to the extent possible, remove billing complaints and provide enough time for consumers to pay their bills without late payment surcharge.At a public hearing presided over by Nepra Chairman Tauseef H. Farooqui, the regulator considered KE’s request for Rs5.30 per unit additional FCA for electricity sold in April but after minor adjustments, allowed Rs5.28 per unit hike.Read More...