Morning Market Brief 22nd jun. 2021

The Benchmark KSE100 index is moving downward for confirmation of its daily evening shooting star but it needs to be very cautious because it's trying to establish ground above supportive trend line of its descending wedge along with a strong horizontal supportive region line on hourly chart since last trading session. Meanwhile daily Bollinger Band is squeezing and it may need to consolidate in current range to decide its next trend. As of now it's expected that index would try to bounce back for an intraday spike from its 61.8% expansion level of its last bearish correction therefore it's recommended to start buying on dip with strict stop loss of 47,730pts. Meanwhile hourly momentum indicators are ready for a pullback. It's expected that initially index would try to target 48,230pts and breakout above this region would call for 48,450pts and 48,660pts. But its recommended to stay cautious because if index would not succeed in closing above 48,660pts then current pull back would be considered as a correction of last bearish rally. On flip side in case of bearish breakout below 47,730pts would call for 47,500pts and 47,200pts. Overall sentiment would remain sideways as long as index is trading above 47,200pts and current dip would be considered as a healthier correction.

 

Electricity demand witnesses 20pc increase this year: Hammad Azhar

Federal Minister for Finance and Revenue Shaukat Fayyaz Ahmed Tarin on Monday directed to initiate international procurement drive of wheat and sugar through public, private and G2G (government to government) arrangements.Finance minister has also asked to workout modalities to maintain strategic reserves of sugar and wheat to ensure smooth supply at affordable prices during the upcoming financial year. The Economic Coordination Committee (ECC) of the Cabinet in last week has approved to start the process for import of 3 million tonnes of wheat to build strategic reserves. The ECC has also asked the concerned ministries to come back to it after two-three weeks for an additional 1m tonnes of wheat. Ministry of National Food Security and Research (MNFSR) had requested the ECC to enhance the permission for wheat import to 4m tonnes for strategic reserves in a bid to deter hoarding and black marketing in order to reduce the commodity price in the country.Read More...

Losing patience and without waiting for his scheduled winding-up speech on June 24, Finance Minister Shaukat Tarin on Monday took the floor of the National Assembly during the middle of the general discussion on the federal budget 2021-22 and castigated the opposition members for constantly calling the document “fake and a pack of lies”.“Shaukat Tarin, the son of Jamshed Ahmed Tarin, never tells a lie.……. They (the opposition members) say this budget is a lie. This is my budget. I have made it. So keep this thing aside,” declared a visibly vexed finance minister while forcefully defending the budget which he had presented before the house on June 11.Like other ministers belonging to Pakistan Tehreek-i-Insaf (PTI), Mr Tarin — the fourth finance minister during the three-year PTI rule — then started lamenting the previous governments for allegedly ruining the country’s economy and praised Prime Minister Imran Khan for his efforts to revive it despite facing the Covid-19 pandemic.Read More...

The government on Monday announced the availability of $1.5 billion Saudi oil facility per annum and approval of the principles for national electricity policy with consensus by the Council of Common Interests (CCI).Speaking at a joint news conference with Energy Minister Hammad Azhar, Special Assistant to the Prime Minister (SAPM) on Revenue and Finance Dr Waqar Masood Khan said that announcement had been made for $1.5bn per annum oil supplies from Saudi Arabia on deferred payments.However, he declined to talk further about details of the oil facility and the reasons behind its reduction from $3bn originally agreed about three years ago which could not be effectively implemented amid cracks in bilateral relations.The SAPM said the government had made very realistic estimates about collection of Rs610bn petroleum levy during the next fiscal year even though some critics were terming it unrealistic and claimed the levy would have to be increased to Rs25 from Rs4-5 per litre at present.Read More...