Morning Market Brief 5th May. 2020

The Benchmark KSE100 index have formed a double top on daily chart by opening with a negative gap during last trading session and later on maintaining previous day's high. While daily closing below 34,000pts would also add its negative sentiment but it's recommended to stay cautious because index could try to retest its resistant regions by opening with a positive gap today and if it would succeed in opening above 34,000pts then an intraday spike towards 34,500-34,600pts could be witnessed but index would face strong resistance at this region during current trading session therefore selling on strength with strict stop loss of 34,600pts could be beneficial. While on flip side if index would not succeed in opening with a positive gap then it would try to slide further downward to retest supportive trend line of its rising wedge at 33,300pts. Today, a volatile session could be witnessed therefore trading with strict stop loss could be beneficial.

Asian stocks rose on Tuesday, tracking a late Wall Street rally as governments eased coronavirus lockdowns while oil extended gains on expectations fuel demand would begin to pick up. Brent crude rose 4.3% to $28.37 a barrel, up for a sixth straight day, and U.S. crude rose $1.38 to $21.77 a barrel, as countries began loosening coronavirus restrictions and crude supply cuts took effect. “The market continues to price in the idea that things are improving,” said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut. In reduced trade, with China, Japan and South Korea on holiday, Australia’s ASX 200 rose 1.26% and Hong Kong’s Hang Seng climbed 0.66%. U.S. stock futures rose 0.75%. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.56%.Read More...

More than 0.3 million borrowers have availed the State Bank of Pakistan’s (SBP) deferment facility to delay principal payments against their loans for one year. “Approximately 303,000 borrowers have been able to defer their principal payments amounting to Rs236 billion,” the SBP said on Monday. More and more borrowers are benefitting from the relief package to extend loan principal repayments by one year, said the central bank. The SBP had, on April 20 allowed banks and development finance institutions to defer principal payments to help businesses during the pandemic. To avail this relaxation, borrowers were advised to submit a written request to the banks before June 30.Read More...

With more than half of the country’s total capacity charges payable to state-owned power projects, the initial resp­onse from their managements has not been very encouraging. This was reported to the Cabi­net Committee on Energy (CCoE) meeting on Monday as it deliberated change in terms of contracts for Water and Power Development Authority (Wapda), Pakistan Ato­mic Energy Commission (PAEC) and government independent po­­wer producers (IPPs) including tho­­se being run on liquified natural gas (LNG) to cut electricity costs.Read More...

The Sensitive Price Indicator (SPI) based weekly inflation for the week ended on April 30, for the combined consumption group, witnessed an increase of 0.72 percent, Pakistan Bureau of Statistics (PBS) reported Monday. The SPI for the week under review in the above mentioned group was recorded at 126.84 points against 125.93 points registered in the previous week, the data release by SBP revealed. The weekly SPI with base year 2015-16=100 is covering 17 urban centers and 51 essential items for all expenditure groups. The Sensitive Price Indicator for the lowest consumption group upto Rs 17,732 witnessed 0.91 percent increase and went up from 131.32 points in last week to 132.18 points during the week under review.Read More...

President Dr Arif Alvi has approved amendments in Companies Act 2017 to provide an enabling regulatory framework to facilitate startups in Pakistan. These amendments were proposed by the Securities and Exchange Commission of Pakistan (SECP) to help promoting and nurturing startups as well as attract local and international innovators. The Companies Act, 2017, promulgated on May 31, 2017, was reviewed by the SECP in consultation with various external and internal stakeholders including PBC, ICAP, ICMAP, OICCI and PICG etc. On the basis of feedback received during the consultation process, various amendments were proposed by the SECP to promote ease of doing business, encourage startups, improve protection of minority shareholders and remove some anomalies noted in the provisions of the Act. These amendments have been enacted through Companies (Amendment) Ordinance, 2020 promulgated on April 30, 2020.Read More...