Morning Market Brief 15th Jun. 2020
Technical Overview
The Benchmark KSE100 index is caged in an ascending trend line and its moving downward after facing rejection from resistant trend line on daily chart. Mean while a daily evening shooting star have been formatted during last trading session. As of now index have strong supportive region ahead at 34,500pts where a strong horizontal supportive region along with supportive trend line of daily wedge would try to support index against bearish pressure but its recommended to stay cautious because index would try to open with a negative gap and if it would succeed in opening below 34,500pts then this region would start reacting as a major resistant region and index would got a push towards 34,000pts. Meanwhile breakout below 34,500-34,400pts region would push index into bearish region on intraday basis and if it would succeed in closing below 34,000pts then a sharp decline would be witnessed towards 33,000pts and 32,500pts. While on flip side index would remain bearish until it would not succeed in closing above 35,200pts and daily closing above 35,200pts would call for 36,000 and 36,500pts.
Regional Markets
Asian stocks, oil fall as second wave fears grow
Asian shares stumbled on Monday and oil prices slipped as fears of a second wave of coronavirus infections in Beijing sent investors scurrying for safe-havens while underwhelming data from China further weighed on sentiment. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3% with Australian shares off 0.1% and South Korea easing 0.3%. Japan’s Nikkei faltered 0.7%. Chinese shares opened in the red with the blue-chip CSI300 index down 0.1%. Monday’s losses follow a strong rally in global equities since late March, fuelled by central bank and fiscal stimulus and optimism as countries gradually lifted restrictions put in place to curb the spread of the novel coronavirus.Read More...
Business News
Amendments aim to increase tax compliance
The government has introduced a range of amendments to the tax laws through the Finance Bill 2020 to improve compliance through penalties for non-tax paying individuals and relaxation in some procedures to facilitate taxpayers. The amendments have been introduced to the Income Tax Ordinance, 2001, Sales Tax Act 1990 and Federal Excise Act. They aim at collecting data on individuals absent from tax rolls, retailers who have not integrated with the Federal Board of Revenue (FBR) online system and electronic surveillance of businesses. These amendments will come into effect from July 1.Read More...
Presidency budget slashed significantly
The overall budget of presidency has been cut by more than 60 per cent but those of the Supreme Court and Islamabad High Court have enhanced their expenditures for 2020-21, according to the budget document. The total budget of the President House was Rs992 million for the outgoing fiscal year but President Arif Alvi has reduced it by Rs597m, or 60.18 per cent for 2020-21 and the reduction has been shown in personal expenditures of the president along with cuts in allowances of the human resources working there.Read More...
Textile, auto sectors disappointed with lack of incentives in budget
Automobile, textile and employee federation representatives have shown their disappointment over the absence of measures to cut the cost of production or create jobs in the Budget 2020-21. Pakistan Automotive Manufacturers Association (PAMA) Director General Abdul Waheed Khan told Dawn that in the light of massive downturn, the auto industry was expecting a stimulus package at least in the shape of withdrawal of unnecessary and avoidable taxes such as additional customs duty (ACD), additional sales tax (AST), federal excise duty (FED) of 2.5-7.5 per cent depending on engine power and turnover tax.Read More...
Federal govt to spend Rs22,921m on Kachi Canal Project
The federal government would be spending Rs22921 million on the remaining work of Kachhi Canal Project to overcome the shortfall of water especially during the harvesting season at district Dera Bugti. The government has earmarked a huge amount of Rs2000 million in the current Public Sector Development Programme (PSDP) to initiate the expansion work of the in the first phase of the kachhi canal project. The project would become the main source of water in the area and would bring change in the fate of the local farmers with the provision of canal water. The federal government has announced the fifth package of the construction of 100 Dams in Balochistan with projected cost of Rs 13512.725 million to establish more dams in the province.Read More...
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