Morning Market Brief 27th Jul. 2020

The Benchmark KSE100 index have succeeded in finding ground at a rising trend line on daily chart during last trading session, mean while weekly chart have succeeded in avoiding a weekly hammer formation. Now it's expected that index would try to target 37,860pts and 38,000pts once again and if it would succeed in closing above 3,8000pts then next targets would be 38,315pts and 38,500-38,700pts regions. Today's closing above 37,860pts would generate a bullish morning star formation on daily chart and this formation would attract some fresh volumes. On short term basis index would remain range bound until it would not succeed in closing above 38,700pts on daily chart.

It's recommended to stay cautious and post trailing stop loss on existing long positions because if index would not succeed in giving a breakout above 38,000pts then bearish pressure would start piling up once again which would try to push index below 37,000pts in coming days.

U.S. stock futures slipped and Asian shares came under pressure in early Monday trade as tit-for-tat consulate closures in China and the United States fanned worries about worsening diplomatic ties between the world’s two largest economies.S&P500 futures dropped 0.2% while Nasdaq futures lost 0.3%. Japan’s Nikkei fell 1.3%, re-opening after a long weekend. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat. Global shares lost steam late last week after Washington ordered China’s consulate in Houston to close, prompting Beijing to react in kind by closing the U.S. consulate in Chengdu. U.S. Secretary of State Mike Pompeo took fresh aim at China last week, saying Washington and its allies must use “more creative and assertive ways” to press the Chinese Communist Party to change its ways.Read More...

The government, under its Agricultural Fiscal Package, has approved Rs1.5 billion sales tax subsidy on locally manufactured tractors in order to promote mechanisation in agriculture sector to enhance per-acre crop output in the country. The government had announced a Fiscal Package of over Rs 1200 billion in the wake of Covid-19 Pandemic. Out of this package, an amount of Rs. 50 billion was earmarked for relief to agriculture sector. The Economic Coordination Committee (ECC), in its meeting held on 13-5-2020, approved the proposals submitted by Ministry of Food National Food Security and Research (NFS&R) and were ratified by the Cabinet vide Cabinet Division’s on 19th May, 2020.Read More...

Pakistan and Saudi Arabia have agreed to continue its mutual consultation on important regional and bilateral issues including global pandemic. This agreement was reached in a telephonic conversation between Foreign Minister Shah Mahmood Qureshi and his Saudi Counterpart Prince Faisal Bin Farhan Al Saud. Shah Mahmood Qureshi said Pakistan will continue all possible cooperation in safeguarding territorial integrity of Saudi Arabia. The Foreign Minister inquired about the health of King Salman bin Abdulaziz of Saudi Arabia and prayed for speedy recovery of Saudi King after a successful surgery. The Foreign Minister apprised of the effective measures taken by Pakistan to prevent the spread of the Corona epidemic, including Smart Lockdown policy.Read More...

The Ministry of Commerce informed the National Assembly that exports have seen an upsurge in few countries despite the global economic slowdown since March. The ministry shared details with the lower house in response to a series of questions demanding explanations on government-led measures towards promoting exports. In the post-Covid-19 period, exports have seen a sizable increase in two major destinations: Saudi Arabia and Qatar. Despite Covid-19, Saudi Arabia has emerged as one of the top export destinations for Pakistani goods in the Middle East as exports to the peninsula increased by 34 per cent in June.Read More...

The government has asked all ministries to line up meetings of their respective committees set up for evaluation of the performance of government employees from grade-1 to 19, leading to retirement of underperformers even before reaching their age of superannuation (60 years). The government has already notified the “Civil Servants (Directory Retirement from Service) Rules 2020” under which employees can be retired even before reaching 60 years of age (superannuation) on the basis of their performance. All the ministries and divisions had been directed to “maintain a list of all civil servants who have completed twenty years of service and the performance of these civil servants shall be reviewed by respective Retirement Board and Committees”. Read More...