Morning Market Brief 21st Jun 2022

Technical Overview

The Benchmark KSE100 index had faced rejection from a horizontal resistant region during last trading session and once again slide below 41,900pts on daily closing basis. As of now it's expected that index would try to bounce back on intraday basis and it would try to target 42,000pts initially and breakout above this region will call for 42,380pts. While on flip side in case of bearish pressure index would try to establish ground above 41,530pts and breakout below this region would call for 41,270pts and 41,000pts. Overall sentiment would remain range bound as long as index is trading between 40,780pts to 43,500pts region. Currently intraday and daily momentum indicators are in bullish mode and if index would succeed in closing above 42,200pts then its next targets would be 43,500pts in coming days.

Asian shares rise as investors pause after selloff

Asian stocks and U.S. share futures turned higher on Tuesday as the market took stock after a recent steep selloff, but concerns remain that aggressive central bank rate hikes to curtail inflation could spark a global recession.MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.85% in early trading, edging up from a more than five-week low hit the previous day.Japan's benchmark Nikkei average opened up 1.16%, and Nasdaq and S&P500 e-mini share futures , each rose nearly 1.5%.I think the green that we're seeing this morning is not necessarily a function that people are moving back in towards risk assets," said Kerry Craig, global market strategist at JPMorgan Asset Management."It's just the normal behavior on the very large selloff to get some reprieve and breathing space come through because fundamentally, nothing has changed on the macro front last week.Chinese blue chips rose 0.5%.Read More...

Business News

Non-textile exports soar to $11.2bn

Pakistan’s non-textile exports grew 27.40 per cent year-on-year to $11.25 billion in the first 11 months of the outgoing fiscal year owing to a partial revival of international orders and the government’s support schemes.Overall growth in the non-textile sector is mainly led by the value-added sectors. The non-textile sector has yet to receive full orders to pre-Covid levels, data compiled by the Pakistan Bureau of Statistics (PBS) showed on Monday.In FY21, three sectors — leather garments, surgical instruments and engineering goods — have maintained growth in export proceeds despite lockdowns in many countries.In the value-added leather sector, exports of leather garments up by 12.04pc and leather gloves 13pc respectively. Contrary to this, the exports of raw leather increased by over 31.57pc during the July-May period.Read More...

‘Tax policies, SBP rules hindering IT exports’

Federal Minister for Information Technology and Telecommunications Syed Aminul Haque said on Monday that the Federal Board of Revenue’s (FBR) policies and some rules of the State Bank of Pakistan (SBP) have been hindering the growth of IT exports. He demanded relaxation in these conditions, including tax enforcement.The minister while presiding over a meeting of the Policy Committee and Research and Development Fund said that the FBR policies impeded achieving an increase in IT exports and freelancers and export remittances, due to which software companies and freelancers were thinking of shifting their business to other countries.He said: “It is necessary to relax strict conditions, including tax enforcement, and give maximum relaxation to IT industry and freelancers, otherwise, it is feared that if IT companies and freelancers are not given facilities, including tax incentives, the industry will shut down soon.Read More...

Saudi Investors Show Keen Interest In Gwadar Oil Refinery Complex, PM Told

Prime Minister Shehbaz Sharif Monday urged Saudi investors to come forward and invest in the different sectors of Pakistan.Talking to a delegation of Saudi businessmen and investors here, the premier said that Pakistan has huge potential for investment in diverse fields, including agriculture and minerals. He said Saudi Arabia and Pakistan enjoy excellent brotherly relations and both the countries should transform their mutual cooperation into economic partnership.The prime minister said Saudi Arabia always extended support to Pakistan on economic and diplomatic fronts. Shehbaz Sharif also reaffirmed Pakistan’s desire to enhance bilateral cooperation with Saudi Arabia in different sectors including trade and investment.The meeting was briefed that Pakistan is an emerging country in terms of investment potential with many facilities for business and making safe investment. There are ample opportunities for trade and investment in tourism, minerals, textiles, leather and other sectors.Read More...

IMF Loan Revival Around The Corner, Claims Miftah

Federal Minister for Finance and Revenue Miftah Ismail on Monday said that an agreement to revive the loan programme with International Monetary Fund is expected to be finalized within a day or two.“I am very hopeful that the IMF programme will be revived within a day or two,” said the Finance Minister while talking to the media after a meeting of the Senate Standing Committee on Finance and Revenue yesterday.He clarified that IMF has nothing to do with the salary increase of the government’s employees in the annual budget. “IMF has no relation with the increase in salaries. Also, the tax exemption to the people earning below Rs1.2 million [annually] will remain in place”. However, the wealthy people should pay their due tax.Talking about the proposed taxes on property, the Finance Minister said that the government would withdraw taxes once construction starts on an empty plot. “Lay one brick on the empty land and the taxes will be lifted. But we will not impose a tax on anyone who has not acquired the possession of a plot or has not received the permission to start construction on it,” Miftah explained.Read More...