Morning Market Brief 24th Mar. 2021

The Benchmark KSE100 index have created a morning shooting star beneath supportive trend line of its previous bullish price channel and 61.8% correction of its last bearish rally therefore it needs to stay cautious with existing long positions because this formation could convert into a cheat pattern if index would not succeed in providing confirmation for this during current trading session by closing above 45,760pts. Initially index would face resistance at 45,760pts where its being capped by a descending trend line along with a strong horizontal resistant region while breakout above this region would call for 45,960pts-46,150pts region. It's recommended to avoid initiating new long positions until index gave a clear breakout above its correction level. On flip side in case of rejection from its resistant regions index would slide towards 45,055pts initially and daily closing below this region would push index towards 44,650pts. Daily and hourly momentum indicators are in uncertain mode and if index would face pressure from its resistant regions then these indicators would start adding further selling pressure which may lead index towards expansion of its current bullish pull back. On monthly chart an evening shooting star would take place if index would succeed in closing below 44,500pts till this month end.

New policy to extend incentives for setting up refineries

The government has finalised a new policy for petroleum refining under which an incentive package will be extended for setting up of deep conversion refineries. The package will provide a 20-year tax holiday and up to nine-year cascading customs duty reduction in pricing provided the investors sign construction agreements before Dec 31, 2021. The policy framework has been finalised in consultation with the local refining industry. The new policy is set to be presented to the Economic Coordination Committee (ECC) of the cabinet shortly for approval. All new deep conversion oil refinery projects of a minimum of 100,000 barrels per day (BPD) refining capacity, to be set up anywhere in the country with government approval latest by Dec 31, 2021, shall be eligible for 20-year income tax holiday from profits and gains from the date of commissioning. Read More...

The exports of textile commodities witnessed an increase of 6.69 per cent during the first eight months of the current fiscal year as compared to the corresponding period of last year. The textile exports were recorded at $9,999.770 million in July-February (2020-21) against the exports of $9,372.819 million in July-January (2019-20), showing growth of 6.69 per cent, according to latest data of Pakistan Bureau of Statistics (PBS). The textile commodities that contributed in trade growth included knitwear, exports of which increased from $2090.039 million last year to $2467.006 million during the current year, showing growth of 18.04 per cent. Likewise, the exports of yarn (other than cotton yarn) increased by 7.70 per cent, from $18.879 million to $20.333 million whereas, exports of bed wear increased by 13.71 per cent from $1597.868 million to $1816.882 million.Read More...

Federal Minister for Planning, Development, and Special Initiatives Asad Umar has directed the Planning Division to work with ministries to ensure that they fully utilize their funds, allocate additional funds to fast-moving projects and encourage and facilitate re-appropriations to and from different projects. The directives were issued by Federal Minister for Planning, Development, and Special Initiatives Asad Umar while presiding over a meeting to review the PSDP 2020-21 here. The minister was briefed on the outcomes of the recent Mid-Year review of PSDP projects, carried out by the Planning Commission. Deputy Chairman Planning Commission, Secretary Planning, and other seniors participated in the meeting. The meeting was informed that the PSDP projects of all the ministries/divisions were discussed in detail during the review exercise. Their progress reports and work plans for the remainder of the financial year were reviewed by the Planning Commission.Read More...

Importers have demanded increase in Customs valuation time frame from the existing 90 days to at least one year and establishment of valuation department in Lahore. Lahore Chamber of Commerce and Industry’s standing committee on fast moving consumer goods convener Ejaz Tanveer said that the 90-day valuation period is creating difficulties for legal importers and encouraging smuggling in the country. He claimed that business deals leading to purchase of goods in foreign countries and shipment of the same to Pakistan take much time and in most cases berths are allotted late to the ships at the Karachi port. During this the 90-day valuation time passes and the Customs Department changes upward duty rates on the goods. He demanded that a valuation office should be set up in Lahore too whose recommendations should be placed before the meeting of the Karachi valuation for deciding the duty rates.Read More...