Morning Market Brief 4th Jun. 2020

The Benchmark KSE100 index have crossed its first milestone towards bullish sentiment by closing above 34,200pts during last trading session but it's still caged in an ascending wedge and resistant trend line of this wedge would try to resist against current bullish sentiment at 34,900pts, mean while index have a major resistant region ahead at 34,650pts for current trading session where a descending trend line along with a horizontal resistant region would try to push index downward again. As of now index have entered into caution zone because if it would succeed in closing above 34,500-34,650pts region then its next targets would be 35,200pts while in case of rejection from its resistant regions index would slide downward again and 34,000pts would try to support against any bearish pressure. It's recommended to stay cautious and post trailing stop loss on existing long positions because index needs fresh volumes to close above its major resistant regions and if it would succeed in penetration above its resistant regions with thick volumes then it would be a caution call for bulls because this penetration could convert into false breakout in coming days in this scenario.

Asian shares rose to a two-month high on Thursday as government stimulus expectations supported investor confidence in an economic recovery from the global coronavirus pandemic. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4%, earlier touching the highest since March 9. Shares in Australia rose 0.66% after the country’s prime minister unveiled a fourth stimulus package to repair the economy. Chinese shares were little changed due to lingering worries about diplomatic tension between the United States and China, while U.S. stock futures fell 0.23%. The euro held onto gains before a European Central Bank meeting later on Thursday, where policymakers are expected to increase debt purchases to support the bloc’s weakest economies.Read More...

With shortage of major petroleum products aggravating with none of more than 80 oil companies maintaining the mandatory stocks, the authorities — both in the petroleum division and petroleum regulator — appeared waking up to the situation as complaints started to reach the prime minister’s desk. The director general of oil wrote to the Oil & Gas Regulatory Authority (Ogra) that product shortage was expected in July. Ogra wrote back to the DG of Oil to align oil imports to domestic demand. The regulator also issued show-cause notices to six of the leading oil companies for violating petroleum rules that required at least 20 days of sales cover. Oil industry sources said that certain import orders were missed by Oil Marketing Companies (OMCs) in May and some others were rearranged by authorities over the past few weeks as shortages built up.Read More...

The Economic Coordina­tion Committee (ECC) of the Cabinet on Wednesday allowed hedging the prices of about nine per cent of oil imports (about 15 million barrels) and constituted an inter-ministerial committee for the selection of an appropriate strike price. The ECC meeting presided over by Finance Adviser Dr Abdul Hafeez Shaikh also approved payment of Rs23 billion from public kitty for onward payment to independent power producers, Rs8.8bn for “strengthening of western border security” and Rs4.41bn to National Accountability Bureau (NAB) to pay arbitration penalties to a British firm.Read More...

All Pakistan CNG Association has demanded 45 percent reduction in gas prices and threatened to close all the CNG stations across the country and to launch a movement to reduce gas prices and stop corruption in the sector. A 45 percent reduction is possible in the gas prices under the present gas pricing formula but masses are being deprived of low gas prices for two months, said representative of All Pakistan CNG Association (APCNGA) while addressing a press conference here. All Pakistan CNG Association central leader Ghiyas Abdullah Paracha said that the Petroleum Division and OGRA should stop playing with each other and cut the gas prices immediately.Read More...