Morning Market Brief 23rd 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.

Asia shares struggle, oil falls as recession fears linger

Asian shares wobbled while commodity prices fell on Thursday as mounting worries about the risks of a global recession amid aggressive rate hikes by the Federal Reserve kept broad investor sentiment fragile.MSCI's broadest index of Asia-Pacific shares outside Japan reversed earlier gains to be mostly flat in Asia trade. Stocks in South Korea were off, while Japan's Nikkei was broadly unchanged.Hong Kong's Hang Seng Index climbed 0.6%, following the news that Chinese President Xi Jinping chaired a top-level meeting on Wednesday that approved a plan for the healthy development of China's large payment firms and fintech sector.Overnight, the dollar fell alongside U.S. Treasury yields after Fed Chair Jerome Powell, in testimony to the U.S. Senate Banking Committee, acknowledged a recession was "certainly a possibility", but the Fed is not trying to engineer one.Read More...

Business News

ECC approves Rs133bn for K-Electric, IPPs

Undecided whether to pass on to consumers or absorb the Rs90 billion outstanding cost of electricity consumed by Karachi residents five years ago, the Economic Coordination Committee (ECC) of the cabinet on Wednesday approved charging 57 paise per unit recent quarterly adjustments in July, August and September.Presided over by Finance Minister Miftah Ismail, the ECC also approved a total of Rs177bn supplementary grants, including the payment of Rs37bn to K-Electric for the tariff differential subsidy (TDS) and Rs96bn to 11 independent power producers (IPPs) set up under the 2002 power policy as the second instalment of the committed payments under the 2021 renegotiated agreements.The ECC approved tariff rationalisation for K-Electric by way of adjustments of increase Rs0.571 per unit with a recovery period of three months,” said an official announcement. This increase in tariff is on account of quarterly adjustments for July-September 2021.Read More...

Banks told to institute ‘work from home’ policy amid energy crisis

The State Bank of Pakistan (SBP) announced on Wednesday a number of measures aimed at conserving energy.It asked banks through a circular to formulate a work-from-home policy for their staffers and use air-conditioners economically.In its directive to the CEOs of banks and microfinance banks, including development finance institutions, the SBP said they should save fuel in view of the growing energy problems.“The air-conditioners at ATM vestibules may be used economically,” said the SBP. ATMs do not work without air-conditioners as they require regular cooling. This means ATMs may not work after sunset.The banks may close all of their premises, including branches, at 7pm or earlier and switch off their electric supply, except for any emergency use, call centres, monitoring of alternative delivery channels (ADCs), back-ups and maintaining necessary electrical/IT equipment,” it said.Read More...

Govt Committed To Industrial Uplift Of South Punjab: Governor

Governor Punjab Muhammad Baligh-ur-Rehman has said that the government is committed to the development of industrial sector as the industrial development guarantees economic prosperity of the country.alking to a Bahawalpur Chamber of Commerce and Industry (BCCI) delegation, led by President Hafiz Muhammad Younis, which called on Governor Punjab Muhammad Baligh-ur-Rehman at the Governor’s House here on Wednesday, he said industries bolster economy and provide employment to many families.he BCCI delegation comprised senior vice president Ahmad Ali Jabbar, vice president Mansoor Ahmed and other members.The delegation requested the Governor for early completion of Bahawalpur Industrial Estate, establishment of separate electric feeder in Small Industries Estate and establishment of Labor Colony.he Governor Punjab said that development of industrial estate in Bahawalpur would lead to industrial development in the area, adding that the Bahawalpur Industrial Estate would be developed on war-footing.Read More...

Conducive Investment Atmosphere In Punjab: CM

A delegation of businessmen and investors of the Federation of Saudi Chamber led by Fahed Al-Bash met Punjab Chief Minister Hamza Shahbaz and expressed keen interest in investment in different sectors including agriculture and livestock.alking on this occasion, the CM said that a conducive investment atmosphere was provided in Punjab.t was time to transform long-standing brotherly relations into durable economic partnership, he added and pointed out that thousands of acres of arid land in Cholistan could be turned into a green oasis through technology.he expansion in economic partnership would also benefit the people of both the counties, he said. The CM assured to provide every possible facility to the Saudi investors and added that vast investment opportunities were available in different sectors in Punjab.Saudi Arabia is a trustworthy friend of Pakistan and it has fully supported the country in every hour of trial,” he said. The people of Punjab would fully appreciate the Saudi cooperation.Fahad Al-Bash showed interest in benefiting from investment opportunities available in agriculture, livestock and other sectors.Read More...