Morning Market Brief 3rd Jun 2022

Technical Overview

The Benchmark KSE100 index had given confirmation of its daily evening shooting start by closing below 42,600pts during last trading session but meanwhile 61.8% correction of last bullish rally have been completed therefore it's recommended to stay cautious and start buying on dip with strict stop loss for day trading and short term investment. Currently index seems to establish ground above a horizontal supportive region which falls at 41,890pts but breakout below this region on daily closing basis will call for 41,580pts. On flip side in case of bullish pull back index would face initial resistance at 42,570pts which would be followed by 42,900pts and 43,015pts.

Solid U.S. job growth anticipated in May; unemployment rate seen at 3.5%

U.S employment likely increased at a brisk clip in May, with the jobless rate expected to have dropped to its pre-pandemic low of 3.5%, signs of a tight labor market that could keep the Federal Reserve's foot on the pedal to cool demand.The Labor Department's closely watched employment report on Friday, also expected to show strong wage gains last month, would paint a picture of an economy that continues to expand, although at a moderate pace.The Fed is trying to dampen labor demand to tame inflation, without driving the unemployment rate too high. The U.S. central bank's hawkish monetary posture and the accompanying tightening of financial conditions have left investors fearful of a recession next year.This report is going to continue to exhibit signs of a tight labor market and when combined with the elevated inflation environment we are in, it further gives the Fed the confidence that they need to stay on their substantial monetary policy tightening path," said Sam Bullard, a senior economist at Wells Fargo in Charlotte, North Carolina.Read More...

Business News

Govt Ensures Immediate Supply Of Water To People Through Tankers: CS

A delegation of United Nation’s Food and Agriculture Organization (FAO)led by Country Representative Ms. Rolle Florence called on Chief Secretary Balochistan Abdul Aziz Uqaili here on Thursday. FAO Green Fund Unit’s Ms Nadine Valat, Dan Gustafson, International Project Coordinator Waleed Mehdi, Secretary Forest and Local Government Dostain Khan Jamaldeni were present on the occasion. The delegation briefed the Chief Secretary Balochistan about the FAO’s promotion of water, agriculture and livestock and other projects saying that that the FAO has been working in different parts of Balochistan for many years. The delegation informed that the EU’s 27 million Euros project would be completed, which will include projects related to agriculture, irrigation, drinking water, small dams, and could benefit rural area of people saying that works were being continued on projects such as rangeland, rehabilitation of forest and training farmers in province.Read More...

Balochistan Govt Releases Rs70m To DCs For Minorities’ Help: Khalil George

Balochistan Parliamentary Secretary for Minority Affairs Khalil George on Thursday said the provincial government under leadership of Chief Minister Abdul Quddus Bizenjo has released Rs 70 millions to Deputy Commissioners (DCs) for financial assistance of the minorities. While talking to people called on him at his office here, he said individuals belonging to minorities living in Balochistan should obtain form and submit it for financial assistance from the Deputy Commissioners of their respective areas. Khalil George said the provincial government under the leadership of Chief Minister Mir Abdul Quddus Bizenjo was using all available resources to resolve the problems of minorities living in Balochistan. He said the provincial government has released Rs 70 million to the Deputy Commissioners for the financial assistance of the minorities in the province, adding that incumbent provincial government was paying special attention on resolving issues of minority community which was admirable.Read More...

We are not Sri Lanka: SBP chief

We are not Sri Lanka neither we are close to it, in fact, the six per cent GDP growth for the last two years is amazing shocks for the entire world, Acting Governor State Bank of Pakistan (SBP) Dr Murtaza Syed said in a podcast on Thursday.“There is no doubt that the economy is facing challenges and the economies of many countries are in trouble due to commodity high prices after Covid. Sri Lank is one of them, but they did not manage well and took some wrong or late decisions that created problems for the country,” Dr Syed said in the SBP podcast.“Pakistan is not Sri Lanka. The country was badly hit by Covid as their income from tourism dried up. The tourism-based economy failed to fight off the challenges. For two years, they allowed the budget deficit to increase, which brought pressure on the current account. They did not raise the interest rate for two years.Read More...

Trade deficit swells to record $43.3bn

Pakistan’s merchandise trade deficit widened by an alarming 57.85 per cent year-on-year to an all-time high at $43.33 billion during the first 11 months of 2021-22 through May on the back of higher-than-expected imports, Pakistan Bureau of Statistics data showed on Thursday.The 11-month deficit has already crossed the full year’s highest trade deficit of $37bn in 2018 when the PML-N government came to an end, mostly led by the China-Pakistan Economic Corridor-related imports. This year’s trade deficit is propelled by the highest ever increase in oil prices in the international market.The trade deficit has been on the rise owing to an unprecedented increase in imports due to a rise in global commodity prices, while exports stagnated at around $2.5bn to $2.8bn a month, mostly those of semi-finished products and raw materials.Read More...