Morning Market Brief 19th May. 2020
Technical Overview
The Benchmark KSE100 index is moving below supportive trend line of its rising wedge during last many days and it faced rejection from same trend line during last trading session and have moved downward after posting a daily double top as well, today it's expected that it would face resistance from a descending trend line at 34,050pts as well meanwhile a strong horizontal resistant region at 34,150pts would also try to push index downward in case of any bullish spike. It's recommended to stay cautious and post trailing stop loss on existing long positions. while closing above 34,500pts would call for 35,200pts.
While on flip side index would try to find ground at 33,500pts and 33,000pts in case of any bearish pressure.
Regional Markets
Asia shares, oil rally on vaccine hopes, euro at two-week highs
Asian shares jumped on Tuesday and oil extended gains on optimism the global economy would recover quickly following a successful early-stage trial of a coronavirus vaccine, while the euro hovered near a two-week top. MSCI’s broadest index of Asia Pacific shares outside of Japan rose 1.5% to two-week highs. Australia’s benchmark index and Hong Kong’s Hang Sang were the lead gainers, up 2% each, South Korea added 1.8% while China’s blue-chip index climbed 0.8%. Japan’s Nikkei added 2% to the highest since early March.Read More...
Business News
$371m WB loans signed for agriculture, social sectors
Pakistan and the World Bank on Monday signed two loan agreements of $371 million to support projects in the agriculture and social sectors. The agreements were signed online by Ministry of Economic Affairs secretary Noor Ahmed on behalf of the federal government, while representatives of Punjab and Khyber Pakhtunkhwa signed the agreements on behalf of their governments. World Bank’s country director Patchamuthu Illangovan signed the agreements on behalf of his organisation. These include a $200m Supporting Human Capital Accumulation in Punjab by Early Investment Project which aims to increase the utilisation of quality health services, and economic and social inclusion programmes among poor and vulnerable households in the select districts in the province.Read More...
Govt working on capacity-based taxation for traders
The government is considering capacity-based taxation for traders across the country besides enforcing mandatory tax filing by maximum withholding taxpayers for increased tax collection. Informed sources said the Adviser to PM on Finance & Revenue Dr Abdul Hafeez Shaikh has directed the Federal Board of Revenue (FBR) to engage with the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and other chambers and trade bodies to cross-match data and cooperation. The sources said the government had also engaged a leading tax Lawyer and Professor Dr Ikram ul Haq who has collected extensive data on potential taxpayers using electricity and telecom data on consumers and small, medium and large traders.Read More...
Economy shrinks by 0.38pc, National Accounts Committee told
Pakistan’s economy suffered a major setback with all key sectors failing to perform according to expectation in the wake of coronavirus outbreak resulting in a negative 0.38 per cent economic growth rate this fiscal year, compared to 1.91pc growth in 2018-19. For a number of years, the services sector was a major reason for economic growth in the country and it has witnessed a rare contraction of 0.59pc this year. In Pakistan, the services sector has been impacted by the Covid-19 related shrinkage in service delivery in major sectors. However, the agriculture sector posted a paltry growth while industrial output plunged.Read More...
APCNGA seeks 40pc cut in gas price
The All Pakistan CNG Association (APCNGA) on Monday said that the local gas prices are linked with oil market and in view of the low international oil prices the rates of local gas can be reduced by 40pc. Following the steep fall in the oil prices in the international market, the gas companies have not reduced the local gas prices and are earning billions of rupees per day while keeping the consumers deprived, said Ghiyas Paracha, central chairman of APCNGA. Any hike in the price of oil in the international market is implemented in the country without any delay but masses are deprived of benefit if the prices collapse in the international market, Ghiyas Paracha said.Read More...
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