Morning Market Brief 17th May 2022

The Benchmark KSE100 index created a cheat pattern of its daily morning shooting during last trading session after facing rejection from its initial resistant region of 43,500pts. As of now hourly momentum indicators have changed their direction toward bearish side and it's expected that index may take a dip initially during current trading session towards 42,360pts-42,200pts region where it would try to establish ground above supportive trend line of its weekly descending wedge but breakout below that region would call for a free fall towards 41,700pts and 41,500pts meanwhile bearish breakout of this region would create panic among short term investors therefore massive selling could be witnessed therefore it's recommended to stay cautious and post strict stop loss on existing long positions. While on flip side in case of bullish pull back index would face initial resistance at 42,960pts where it's being capped by a horizontal resistant region, while breakout above region would call for 43,200pts and 43,500pts.

Asian shares edged higher on Tuesday despite data reinforcing investor fears the global economic recovery may be more fragile than expected, even as inflationary pressures remain high.MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.84% on Tuesday, but is still down the index is down 6.7% so far this month. U.S. stocks ended the previous session with mild losses.In Tokyo, the Nikkei was flat in early trade, while in Australia the S&P/ASX200 index gained 0.34%.Hong Kong's Hang Seng Index was 1.2% higher and mainland China's CSI300 Index gained 0.07%.The U.S. dollar index , which tracks the greenback against a basket of currencies of other major trading partners, was flat in Asian trade to be at 104.1.Economic growth fears in the world's two largest economies have re-emerged following weak retail sales and factory production figures in China and disappointing U.S. manufacturing data.Investors are also weighing the global inflationary impact of lockdowns in China to combat the coronavirus, which have halted factory production in areas across the country.Read More...

Prime Minister Muhammad Shehbaz Sharif on Monday said that it was essential for all the coalition parties to work collectively to achieve the stability of democracy and for public welfare.The prime minister, in a meeting with Jamiat Ulema-e-Islam-Fazl chief Maulana Fazlur Rehman, said that in order to achieve the said objectives, the government would keep the national interest above all during its decision making. During the meeting, they discussed the overall political and economic situation, besides the measures to relieve the masses from inflation and bring in economic stability.The prime minister reiterated his government’s resolve to provide relief to the people by ensuring the availability of essential commodities at low prices. The government would utilise all available resources in this regard, he assured.Both the leaders unanimously believed that the development and stability of Pakistan were linked with democracy and the supremacy of the Constitution. Also, Prime Minister Shehbaz Sharif held consultations with MQM-Pakistan and took them into confidence over the prevailing political situation in the country.Read More...