Morning Market Brief 20th Apr. 2020

The Benchmark KSE100 index have closed above its major resistant region of 32,500pts during last trading session after a whole week of accumulation and it's expected that initially it would continue its bullish momentum. Mean while this bullish rally would face its initial resistance at 33,500pts and breakout above that region would call for 33,860pts or 34,054pts in coming days. Current bullish rally would face lack of participation from Oil & Gas exploration sectors because Crude oil prices have slashed below 15 $/bbl region, therefore may be the widely expected huge buying volumes could not be witnessed. This sentiment would shake investors confidence for short term trading. It's recommended to stay on long side until index face rejection from its resistant regions and wait for a clear reversal sign before initiating any short positions because on breakout above 34,054pts this bullish sentiment could continue towards 34,500pts and 35,000pts for completion of its bearish correction.

While on flip side index is being supported by a rising trend line on daily chart and it would try to push index in bullish direction until index would not succeed in closing below this line. Mean while index would find its initial supportive region at 32,300pts in case on bearish pressure followed by 31,910pts.

Caution gripped Asian share markets on Monday on expectations a busy week of corporate earnings reports and economic data will drive home the damage done by the global virus lockdown, while a glut of supply sent U.S. crude spiraling to 20-year lows. Japan reported its exports fell almost 12% in March from a year earlier, with shipments to the United States down over 16%. Early readings on April manufacturing globally are due on Thursday and are expected to show recession-like readings. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS eased 0.2% in slow trade, with a pause needed after five straight weeks of gains. Japan's Nikkei .N225 fell 0.9% and Shanghai blue chips .CSI300 2.4% even as China cut benchmark interest rates as widely expected. E-Mini futures for the S&P 500 ESc1 slipped 0.2%, having jumped last week on hopes some U.S. states would soon start to re-open their economies.Read More...

Pakistan’s development spending will be further cut during the current and next fiscal years as part of a larger fiscal rearrangement to put the $6 billion Extended Fund Facility (EFF) back on track following about $1.4bn additional emergency funding by the International Monetary Fund (IMF) that provides the country a breathing space to fight the post-coronavirus situation. The latest IMF record suggests that the country’s consolidated development expenditure for the current year would be down by 34 per cent to Rs953bn, compared to the pre-virus estimate of Rs1.437 trillion. The major reduction of more than 45pc would be in provincial annual development plans (ADPs) to Rs461bn against Rs844bn estimated before the Covid-19 outbreak.Read More...

Adviser to the Prime Minister on Commerce, Textile, Industry and Investment Abdul Razak Dawood said on Sunday that the government was finalising a scheme to support small and medium enterprises (SMEs) across all sectors. “It is our endeavour to help small businesses as compared to larger ones because of their weaker financial position,” Mr Dawood said in a Twitter posting. Adviser to the PM on Finance Dr Abdul Hafeez Shaikh has already said that Rs100 billion had been allocated for supporting SMEs and the agriculture sector as part of the government’s relief package of Rs1.2 trillion to deal with the impact of Covid-19 on economy.Read More...

The state owned sui gas companies SSGCL and SNGPL have estimated revenue shortfall of Rs20.372 billion due to lockdown. The estimated revenue shortfall of SSGCL due to lock down and deferred domestic collection during March was Rs3.61 billion while in April it is estimated to be Rs10.3 billion, official documents available with The Nation reveals The estimated revenue shortfall of SNGPL due to lock down and deferred domestic collection during March was Rs6.462 billion, the documents reveal. The estimated revenue shortage of SNGPL for the Month of April has yet to be finalised.Read More...

Pakistan’s goods and trade services with United State of America (USA) witnessed decrease of 1.90 percent in surplus during first eight months of current financial year (2019-20) as compared to the corresponding period of last year. The overall exports to USA were recorded at $2755.213 million during July-February (2019-20) against exports of $2687.053 million during July-February (2018-19), showing growth of 2.53 percent, according to State Bank of Pakistan (SBP). Overall Pakistan’s exports to other countries witnessed an increase of 2.64 percent in eight months, from $16.009 billion to $16.433 billion, the SBP data revealed. On the other hand, the imports from USA into the country during the period were recorded at $1469.674 million against $1376.547 million last year, showing increased 16.76 percent in first eight months of this year. The overall imports into the country decreased by 17.51 percent, from $35.945 billion to $29.651 billion, according to the data. The trade surplus during the period under review was recorded at $1285.539 million against $1310.506 million during same period of last year, showing decline of 1.90 percent, the data revealed.Read More...