Morning Market Brief 28th Apr. 2020

The Benchmark KSE100 index is extending its lows after intraday correction and expansions and now it seems that index would try to target 32,000pts during current trading session and breakout below that region would call for 31,760pts and then 31,200pts. It's recommended to stay cautious and avoid initiating long positions because if index would succeed in sliding below 32,000pts then its trend would convert towards bearish side on short term basis, which may lead it towards 30,000-29,700pts. Bearish sentiment would start gaining momentum once index would succeed in closing below 31,760pts because breakout below that region would call for 30,000pts region immediately.

While on flipside index would face strong resistances at 33,100pts if it would succeed in bouncing back from its supportive region of 32,000pts or 31,760pts. This region would getting strengthen with every passing day because on weekly chart momentum would start losing strength.

Asian shares and U.S. stock futures dipped into the red on Tuesday, erasing earlier gains as a renewed decline in oil prices overshadowed optimism about the easing of coronavirus-related restrictions seen globally. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.3%. Shares in China .CSI300 fell 0.7% and South Korean shares .KS11 fell 0.22%. Oil futures slumped after the largest U.S. oil exchange-traded fund said it would sell all its front-month crude contracts to avoid further losses as prices collapse. Some investors are hoping the worst may be over for the world economy as more countries allow businesses to re-open, but others see reasons to remain cautious, especially as a coronavirus vaccine has yet to be developed. “We are less optimistic and expect a slower recovery in the world economy,” Commonwealth Bank of Australia said in a research note.Read More...

ISLAMABAD: The FBR on Monday issued a notification for exemption of sales tax on services of property developers and promoters in the federal capital. Amid the ongoing coronavirus pandemic, the government implemented an amnesty scheme along with a string of relief measures to promote the construction sector which offers employment to a large number of labourers. As per the decision, property developers and promoters as well as allied services of low-cost housing schemes, will not pay any sales tax on services. The Naya Pakistan Housing Development Authority or government’s Ehsaas Programme will approve or finance these schemes. No one will claim input tax adjustment or refund in case of availing the exemption.Read More...

Pakistan’s exports to the Middle Eastern countries increased by 36 per cent during the current fiscal year, data released by the Ministry of Commerce showed on Monday. The ministry claimed that the growth in export proceeds was achieved owing to several initiatives but did not share any details on the actions. Three major commodities posted impressive growth between July 2019 and April. The rice exports to the region increased by 59pc in value from $264 million to $420m, meat from $127m to $200m, an increase of 57pc during the period under review. And fruits and vegetables exports enhanced from $70m to $140m, an increase of 100pc.Read More...

The government has finalised a strategy to gradually re-open all businesses linked with the construction sector in order to overcome the threat of Corona in addition to arresting the growing unemployment in this division, said Faisalabad Divisional Commissioner Mr. Ishrat Hussain. He was talking to a delegation of the Faisalabad Chamber of Commerce & Industry (FCCI) that met him under the supervision of FCCI President Rana Sikandar Azam Khan. He said that apart from other countries, Pakistan has to face multiple problems of poverty, unemployment, economic revival and threat to the lives of our people due to corona virus.Read More...

The number of global novel coronavirus cases crossed the 3 million mark on Monday, according to a running tally by the US' Johns Hopkins University. The data showed that the number of infections had reached 3,002,303 while the number of people who died from complications from the virus topped 208,000. Over 878,000 people have recovered. The US remains the country with the most infections at nearly 973,000. It also has the highest number of deaths with over 55,000. Meanwhile, over 5.4 million coronavirus tests have been administered so far in the US. Italy has the second-highest death toll with over 26,900, followed by Spain with over 23,500 deaths.Read More...