Morning Market Brief 28th jun. 2021

Technical Overview

The Benchmark KSE100 index initially have given bearish breakout of its descending wedge on hourly chart but this breakout may turn into a cheat pattern on false breakout because major supportive trend line of its descending wedge is still standing ahead at 47,280pts meanwhile this line falls at neckline of its hourly head and shoulder formation and index may bounce back after retesting this trend line along with its major horizontal supportive region above 47,300pts. If index would not succeed in penetration below these supportive objects then sentiment would change suddenly and index would start a sharp bullish rally towards its initial resistant region at 47,900pts. Currently its recommended to stay cautious because head and shoulder formation and descending wedge formations are primarily continuation patterns and if their supportive trend lines would not break then index would start a bullish rally but breakout below 47,280pts would push index towards deeper corrections in coming days, therefore it's recommended to start buying on dip during current trading session with strict stop loss of 47,280pts. Initially breakout above 47,900pts would call for 48,150pts and 48,450pts. Meanwhile hourly and daily momentum indicators are ready for bullish crossovers and these would try to pump fresh buying volumes.

Regional Markets

Asian shares kick-off week on cautious note as COVID-19 cases spike

Asian shares got the week off to a cautious start on Monday, with Chinese markets holding steady, as a spike in coronavirus cases across the region over the weekend hurt investor sentiment while oil hovered around 2-1/2 year highs.MSCI's broadest index of Asia-Pacific shares outside Japan was last a shade weaker at 702.57. Australian shares slipped 0.2%. South Korea's benchmark KOSPI was barely changed as was Japan's Nikkei.Investors were concerned about a spike in coronavirus infections in Asia with Australia's most populous city of Sydney plunging into a lockdown after a cluster of cases involving the highly contagious Delta strain ballooned.Indonesia is battling record high cases while a lockdown in Malaysia is set to be extended. Thailand too announced new restrictions in Bangkok and other provinces.Read More...

Business News

Govt asked to focus on boosting exports

As the country’s trade deficit has increased by almost 30% to $28 billion during 11 months (July-May) of FY2020-21, the FPCCI’s Businessmen Panel has asked the authorities to focus on further accelerating exports, besides keeping some check on unbridled imports of luxury items.The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel Chairman Mian Anjum Nisar warned that the pace of growth in imports is projected to increase further in the coming months following the abolishment of regulatory duty on imports of raw materials and semi-finished products. He observed that the economic managers will have to chalk-out a long term plan for import substitution and increasing exports so that Pakistan could become self reliant. He also emphasized the need for adoption of international best practices for priority sectors and consultations with international experts to achieve success.Read More...

Pakistan needs to grow its economy further, says finance minister

Federal Minister for Finance and Revenue Shaukat Tarin on Saturday said that Pakistan is going for growth with a bottom up approach as the trickle down approach didn’t yield results in the last 72 years.Tarin said the government will use commercial banks to retail credit to microfinance institutions like Akhuwat and microfinance institutions to provide low rate loans to 5 to 6 million households to start their own business and these small businesses will lead the growth engine. The finance minister was virtually addressing the launch ceremony of InfraZamin Pakistan Limited, first-of-its-kind facility providing local currency guarantee solutions for infrastructure finance.He said that Pakistan’s debt market is improving in terms of depth, breadth and liquidity. He said that Pakistan’s GDP growth rate for current financial year, which is closing on June 30, will be 4 percent. The growth is coming from real estate, agriculture exports and the housing sector, which were the focus areas of Prime Minister Imran Khan.Read More...

PM delighted over Roshan Digital Account inflows

Prime Minister Imran Khan on Sunday said that the Roshan Digital Account had achieved another milestone as the inflows of deposits had crossed $1.5 billion mark on Friday, with investment in Naya Pakistan certificates surpassing $1bn.On his Twitter account, the prime minister posted an index of the State Bank of Pakistan (SBP) showing cumulative inflows of deposits in the Roshan Digital Account, terming it good news.He said that the accounts and the deposits had set new records since $1bn inflow was recorded two months ago.Roshan Digital Account is a banking facility available to Pakistani expatriates, which allows them to have access to banking services within the country without having to visit a consulate, embassy or a physical bank branch.Read More...

ECC meets today to consider steps for reviving cotton crop

The government has called a meeting of the Economic Coordination Committee on Monday (today) to consider allowing an intervention price of about Rs5,000 per 40kg for cotton, which has arguably been necessitated by a sharp decline in production, besides clearing a dozen supplementary grants so close to the passage of federal budget by parliament.To be presided over by Finance Minister Shaukat Tarin, the ECC meeting is expected to approve a notification about minimum indicative prices of tobacco and revision of cess rates on the commodity for the year 2021-22.The ECC meeting will take up extension of general subsidy on five essential items through the Utility Stores Corporation for another six months (from June 30 to December 31, 2021) because of its poor utilisation during the current fiscal year and also consider a summary of the maritime affairs ministry for recovery of demurrages and other claims of receivables from the Pakistan State Oil.Read More...