Morning Market Brief 2nd jul. 2021

Technical Overview

The Benchmark KSE100 index had confirmed its morning shooting star formation on daily chart during last trading session and recovered above its initial resistant region of 47,500pts, but it's recommended to stay cautious until index succeeds in closing above correction levels of its previous bearish rally on daily chart. As of now it's expected that index would try to continue its bullish rally during current trading session and initially would try to target 48,000pts-48,130pts region and breakout above this region would call for 48,350pts and 48,500pts in coming days. Overall a volatile session could be witnessed during current trading session and index may remain range bound as intraweek traders may start profit taking from their existing long positions, therefore buying on dip could be beneficial. While on short term basis index would continue its bullish rally once it would succeed in closing above 48,350pts on daily chart. On flip side in case of rejection of from its resistant regions index would initially try to establish ground above 47,500pts but breakout below this region would push index towards 47,200pts and 46,900pts. Overall sentiment would remain bullish until index would not succeed in closing below 46,900pts.

Regional Markets

Hong Kong policeman was stabbed in "lone wolf" attack- security chief

Jhe 50-year-old man who stabbed a Hong Kong policeman on the anniversary of the city's return to Chinese rule on Thursday was a "lone wolf" who committed a terrorist act, Secretary for Security Chris Tang said.Police said late on Thursday they were investigating an attempted murder and suicide after a man attacked a police officer from behind at 10.05 p.m., then stabbed himself in the chest with the knife.The man was sent to the hospital, where he died about an hour later. The policeman, 28, sustained a 10 centimetres wound on his back and a punctured lung and underwent surgery, police said.Read More...

Business News

PITB, PSEB sign MoU

Punjab Information Technology Board (PITB) and Pakistan Software Export Board (PSEB) have signed an MoU for the facilitation and promotion of local IT industry, startups and freelancers.The ceremony, presided over by Minister for IT and Higher Education Punjab Raja Yassir Humayun Sarfraz as the chief guest, was held at Arfa Software Technology Park and the MoU was signed by Chairman PITB Azfar Manzoor and MD PSEB Osman Nasir. PITB DG e-Governance Sajid Latif, Director PSEB Sulman Hasan and other senior officials were also present at the occasion.According to the MoU, PSEB and PITB will collaborate on promotion of local IT industry, entrepreneurship and incubation center development programs.Read More...

UAE envoy meets Tarin

Hamad Obaid Ibrahim Salim Alzaabi, Ambassador of United Arab Emirates to Pakistan, called on Federal Minister for Finance and Revenue Shaukat Tarin at Finance Division on Thursday.Hamad Obaid Ibrahim Salim Alzaabi, and Shaukat Tarin discussed the various aspects of bilateral relations. Both the dignitaries expressed their satisfaction over the current status of the strong ties between the two countries and pledged to further cement the mutual relationship. Hamad Obaid Ibrahim Salim Alzaabi and Shaukat Tarin further agreed that the ties between the two countries are based on strong foundations of religious brotherhood and cultural homogeneity. The bilateral ties have become strategic with the passage of time. The emerging challenges at the world stage have further necessitated the even closer working relationship between the two countries.Read More...

Annual consumer inflation eases to 8.90pc

Annual consumer inflation slightly eased to 8.90 per cent during the outgoing fiscal year (FY21) from previous year’s 10.74pc, showed data released by the Pakistan Bureau of Statistics on Thursday.Inflation slightly fell to 9.7pc in June from 10.9pc in May mainly because of improvement in supply of food items and reduction in prices of essential kitchen items. Inflation remained in double digits from March to May 2021. It was mainly driven by a double-digit growth in food inflation in both urban and rural areas.On a month-on-month basis, inflation increased by 0.2pc. Food and non-food items prices are still on the higher side.Read More...

Trade deficit swells to $30.8bn in FY21

Pakistan’s merchandise trade deficit widened by 32.9 per cent, or $7.616 billion, in the outgoing fiscal year (FY21) from a year ago on the back of lower export proceeds and higher than expected imports, data shared by the Ministry of Commerce showed on Thursday.The annual trade deficit reached $30.796bn in July-June FY21 from $23.180bn over the corresponding period of last year. This may pose some challenges for the government in controlling external accounts.In rupee terms, the trade deficit was posted at 33.8pc on a year-on-year basis.The monthly deficit reached $3.333bn in June 2021 from $2.120bn a year ago, reflecting an increase of 57.2pc. Read More...