Morning Market Brief 8th jul. 2021

Technical Overview

The Benchmark KSE100 index had continued its bearish journey towards expansion of its recent bearish correction during last trading session but it still succeeded in maintaining above its major supportive region of 47,000pts. As of now it's expected that index would try to format a daily double bottom above this region and would try to bounce back during current trading session, therefore it's recommended to start buying on dip with strict stop loss of 46,900pts. While on breakout below 46,900pts it would be beneficial to cut and reverse existing long positions because breakout below this region would call for 46,500pts and 46,065pts in coming days. Index is trying to create a flag formation on hourly chart which indicates that index would try to bounce back from supportive trend line of its bearish price channel but a clear breakout above 47,730pts would be required for a short term trend change. For current trading session it's expected that index would try to bounce back initially towards 47,350pts and 47,450pts on intraday basis.

Regional Markets

Virus woes and tech crackdown hammer stocks; bonds rally

Asian stocks fell to a six-week low on Thursday as an extended selloff in tech shares in Hong Kong and rising virus cases added to a broad risk-averse mood, pressuring oil prices and lending support to bonds and the dollar. A surprise dovish turn from Chinese policymakers also sparked a rally in sovereign Chinese debt and sent 10-year yields to a 10-month low. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1% to its lowest since late May, shrugging off a positive tilt from Wall Street. "Market sentiment is turning somewhat shaky," said OCBC analyst Terence Wu. Japan's Nikkei (.N225) fell 0.6% and S&P 500 futures wobbled 0.3% lower. The Hang Seng index (.HSI) led losses with a 1.9% drop, its eighth consecutive session in the red, with more falls in internet giants Tencent (0700.HK), Meituan (3690.HK) and Alibaba (9988.HK) as the sector reels from sweeping Chinese regulatory scrutinty.Read More...

Business News

Privatisation of few PSEs to be completed in next few months

The Privatisation Commission on Wednesday noted that privatisation of few public sector entities (PSEs) would be completed in next few months as they are in advanced stage of sell off. Federal Minister Mohammedmian Soomro chaired a review meeting in the Ministry. The current status and progress in privatisation of entities in the active privatisation list was reviewed. The latest report regarding the progress made thus far in the transaction of SOEs was presented and various issues were discussed in detail. These include federal government properties across Pakistan, 23 out of 27 were auctioned last yearRead More...

Pakistan achieves highest demand and supply of power

Federal Minister for Energy Hammad Azhar has said that on Wednesday, Pakistan’s history highest demand and supply of electricity of 24,284 MW has been achieved. The higher demand and supply reflects not just higher demand and generation but also increased transmission capacity, Hammad Azhar said in a tweet. This new record has been set despite the fact that Pakistan’s biggest dam, Tarbela, is producing just 25 per cent of its output this year during peak season, he added. In contrast, highest generation & transmission achieved before PTI govt was in July 2018 at 20,811 MW, Hammad Azhar tweeted. Meanwhile regarding lesser RLNG supply to the power plants in August, spokesperson of the Ministry of Energy said that minister for Energy, Muhammad Hammad Azhar has already issued directions to SNGPL to provide maximum gas supplies in order to ensure seamless power supply during summer months. Accordingly, SNGPL has already increased gas supplies to 750mmcfd from 685mmcfd, he added.Read More...

Bank profits up 43pc in CY20 despite Covid: SBP

Despite pandemic the profits of the banking sector surged by 42.92 per cent in calendar year 2020, the State Bank of Pakistan (SBP) said on Wednesday. The SBP in Financial Stability Review CY20 noted that drastic cut in policy rate during March to June 2020 transmitted into lower funding costs on deposits due to immediate re-pricing of saving deposits. On the other hand, interest earnings were supported by increase in the volume of investments in government securities. Banks investments shot up by 33.51pc to Rs12 trillion during CY20 (12.96pc rise in CY19) predominantly driven by investments in government securities. Weak financing demand, abundant liquidity, and high government budgetary borrowing needs accelerated banks’ investments.Read More...

Reduced car prices will be implemented in two days

Minister for Industries Khusro Bakhtiar said on Wednesday that new reduced car prices would be implemented in a few days to reflect the tax and duty cuts on automobiles in the budget for fiscal year 2022. Addressing a press conference in Islamabad with Information Minister Fawad Chaudhry on aspects of the new auto policy, the federal minister named several cars from different categories and the respective price reduction they would see. "Implementation of new prices for all these cars will be done in a day or two," he said, adding that a notification in this regard would be issue soon.Read More...