Morning Market Brief 18th jun. 2021

Technical Overview

The Benchmark KSE100 index have penetrated below supportive trend line of its bullish price channel on hourly chart during last trading session and now this line would try to react as a resistant region in case of bullish pull back. As of now it's expected that index would try to pull back in bullish direction before 47,900pts for an intraday correction and if it would not succeed in closing above 48,430pts on hourly chart then once again it would start sliding downward and this time it may extend its low towards 47,730pts. Meanwhile daily and weekly momentum indicators have changed their direction towards bearish side therefore it's recommended to stay cautious and start selling in chunks. Today's closing below 48,000pts would create a weekly hammer which would also instigate negative sentiment among investors. While on flip side in case of bullish pull back index would face initial resistance at 48,430pts which would be followed by 48,610pts therefore it's recommended to stay on selling side with strict stop loss of 48,610pts.

Regional Markets

Foxconn founder asks Taiwan to allow vaccine talks with Chinese firm

Terry Gou, the billionaire founder of Taiwan's Foxconn, asked for government permission on Friday to negotiate with a Chinese company for the purchase of BioNTech SE COVID-19 vaccines to help address the island's shortage of shots.The Taiwanese government's own deal with BioNTech fell through earlier this year - a problem Taiwan has blamed on pressure from Beijing.China has denied the accusation, saying Taiwan is free to obtain the vaccines via Shanghai Fosun Pharmaceutical Group Co Ltd, which has a contract with BioNTech to sell the vaccines in Greater China, including Taiwan.Read More...

Business News

Textile exports expected to increase by $5 billion in next fiscal year

style="text-align: justify;">Pakistan’s textile exports are targeted to increase by $5 billion in next fiscal year mainly due to the continuous reduction in tax duties on raw materials.Robina Ather, chairperson of National Tariff Commission (NTC), said that significant relief has been given to various export sectors including textiles in the last two years. So far, more than 2,000 tariff lines have been reduced to zero. Tax duties on all raw materials have been significantly reduced, she further added. Textile exports are targeted to increase by $4-5 billion next year, she informed.She made these remarks in the meeting of the Senate Standing Committee on Finance, Revenue and Economic Affairs, to consider and finalize the recommendations on the Finance Bill, 2021. The meeting was held under the chairmanship of Senator Muhammad Talha Mehmood at the Parliament House on Thursday. In the meeting, various points of the Finance bill 2021-2022 were discussed in detail.Read More...

SBP governor calls on Shaukat Tarin

Federal Minister for Finance and Revenue Shaukat Tarin on Thursday assured the State Bank of Pakistan of his full support in all those efforts that will promote the banking sector outreach in the country, mobilisation of resources, growth, development and job creation.Governor State Bank of Pakistan, Dr Reza Baqir called on the Federal Minister for Finance and Revenue Shaukat Tarin here at the Finance Division.The governor updated the finance minister on the progress of different policy initiatives that are designed for the uplift of the rural and urban youth. The governor briefly touched upon the simplification of regulation the central bank has proposed to keep pace with the fast-changing financial landscape of the country.He said that the central bank is fully committed to assist the process of economic growth and promote the fuller utilisation of the country’s resources in line with the objectives of the present government.Read More...

Banks given time to develop model for housing loans

The State Bank of Pakistan has directed banks to come up with their informal income proxy models operational for low-cost housing within four weeks as the process of lending for housing is still much below than the expectations of the government.“In order to facilitate low-cost housing finance applicants with informal income, the State Bank has asked banks to develop and deploy income estimation model for extension of low-cost housing finance to such applicants,” said the SBP on Thursday.Bankers were of the view that basic problem was the lease of land as they can’t extend loan for construction of houses on unleased lands. The lease itself is highly complicated and time-taking process in the country.People usually buy unleased lands and build houses since getting lease means spending time and money.Read More...

Merger of two power agencies approved

Amid institutional disagreement over reasons behind the recent power shortfalls despite surplus capacity, the Cabinet Committee on Energy (CCoE) on Thursday once again approved the merger of two power sector agencies — Alternative Energy Development Board (AEDB) and Private Power & Infrastructure Board (PPIB).The CCoE meeting was presided over by Minister for Planning and Development Asad Umar.Informed sources said the reasons explained by Power Secretary Ali Reza Bhutta were challenged by Railways Minister Azam Khan Swati and National Electric Power Regulatory Authority (Nepra) Chairman Tauseef H Farooqui.Read More...