Morning Market Brief 16th jun. 2021

Technical Overview

The Benchmark KSE100 index had not succeeded in maintaining its bullish sentiment during last trading session and faced rejection from its major resistant trend line again. As of now it's expected that index would face some serious pressure towards 48,450pts where it would try to establish ground above a strong horizontal supportive region while breakout below that region would call for 48,200pts and 48,000pts. While on flip side in case of reversal index would face initial resistance at 48,850pts which would be followed by 49,050pts. Meanwhile a double top on daily chart have been formatted which would also try to add some pressure on index around its resistant regions, on basis on these elements it's expected that overall a volatile session would be witnessed during current trading session. It's recommended to stay cautious and adopt swing trading until index could not succeed in giving a breakout either above 49,056pts or below 48,200pts. Hourly momentum indicators are in bearish mode and daily stochastic is trying to change its direction towards bearish side as well which would increase uncertainty among investors.

Regional Markets

Asia on tenterhooks for Fed, oil keeps climbing

Asian shares were subdued on Wednesday with investors wary of any hint of hawkishness from the U.S. Federal Reserve given lofty asset valuations rely so heavily on an endless supply of super-cheap money. A looming data dump on Chinese retail sales and industrial production offered another reason for caution, with some modest slowdown in annual growth expected. Moves were modest, except in the oil market where prices hit the highest since April 2019 on a potent mix of post-pandemic demand and restricted production. MSCI's broadest index of Asia-Pacific shares outside Japan barely moved, while Chinese blue chips dipped 0.3%. Japan's Nikkei eased 0.2%, but South Korean stocks rose 0.6% to a record high after five months of effort. Both S&P 500 futures and Nasdaq futures were all but unchanged. EUROSTOXX 50 futures rose 0.1% and FTSE futures 0.3%.Read More...

Business News

BUDGET 2021-22: Sindh presents Rs1,477.9bn tax-free budget

style="text-align: justify;">Amid strong protest by the whistle-blowing members of three major opposition parties, Chief Minister Syed Murad Ali Shah presented in the Sindh Assembly on Tuesday a Rs1,477.9 billion tax-free budget with a development outlay of Rs329bn. He said the economic meltdown due to Covid-19 and inflation had severely affected the lives of ordinary citizens. “We are sensitive to the hardships being faced by the common man and it was against this background that we stretched our resources and rolled out interventions that could provide some immediate relief,” he said, adding: “We began some programmes for empowering the vulnerable sections of our society to gradually move towards ‘inclusive growth’.” Highlighting some of the projects of immediate relief to the common man, the chief minister said an amount of Rs17.4bn had been set aside as ‘health risk allowance’ for all health professionals in the financial year 2020-21.Read More...

Nepra reserves quarterly tariff hike for KE

While reserving its judgement on tariff increase, the National Electric Power Regulatory Authority (Nepra) on Tuesday expressed displeasure over night time power cuts in Karachi owing to administrative and financial disputes of K-Electric and Sui Southern Gas Company Ltd (SSGCL). Presiding over the a public hearing on quarterly adjustment of KE’s petition for 37 paisa per unit increase in tariff, Nepra Chairman Tauseef H. Farooqi observed that it was unfortunate that people of Karachi were suffering due to a fight between SSGCL and K-Electric. He was referring to inordinate delays over the signing of Gas Supply Agreement (GSA) between two Karachi based utilities. He was particularly critical of the loadshedding in the night as consumers complained that it was creating serious discomfort to every walk of life but particularly the residential consumers. “We have asked you not to carry out night time loadshedding in Karachi then why you are doing it?” questioned Mr Farooqui and wondered if the KE had signed the GSA with SSGCL.Read More...

BUDGET 2021-22: Sindh to spend Rs329bn on development

The Sindh government has unveiled Rs329 billion Annual Development Programme (ADP) for 2021-22, which is more than double the revised ADP of the outgoing fiscal year. The government argued that the downward revision for the ongoing fiscal year was due to the impact of Covid-19 pandemic which damaged the economic environment, hit revenue receipts and created joblessness on large scale in the province. The development expenditure of the province was estimated at Rs329.032 billion, which includes Rs222.5bn for the Provincial ADP and Rs30bn for Districts ADP, foreign project assistance of Rs71.16bn and Rs.5.4bn from Federal PSDP Grant for schemes being executed by the Sindh government.Read More...

Petrol price hiked to Rs110.69 per litre

The government on Tuesday increased the prices of all petroleum products by up to four per cent for next 15 days to pass on partial impact of increase in international prices. According to a notification issued by ministry of finance, the ex-depot price of petrol has been increased by Rs2.13 per litre and that of high speed diesel (HSD) by Rs1.79 per litre. The ex-depot price of kerosene has been increased by Rs1.89 per litre and that of light diesel oil (LDO) by Rs2.03 per litre. As such, the ex-depot rate of petrol has been fixed at Rs110.69 per litre instead of Rs108.56 per litre at present, showing an increase of 1.96pc. Likewise, the ex-depot HSD price has been set at Rs112.55 per litre from existing rate of Rs110.76 per litre, up 1.6pc.Read More...