Morning Market Brief 22nd Apr. 2020

The Benchmark KSE100 index have faced rejection from 50% correction of its previous bearish rally and have formatted a bearish engulfing pattern on daily chart while same correction region fall on a strong horizontal resistant region therefore significance of this reversal have increased on short term basis. For current trading session index have its initial supportive region between 32,100pts-32,000pts while breakout below 32,000pts would call for 31,760pts and 31,400pts. Meanwhile uncertainty in crude oil prices would add pressure on Oil & Gas exploration sectors and lack of participation from this sector would also add pressure on index. But it's recommended to stay cautious and post trailing stop loss on existing long positions because if index would succeed in finding some ground at its supportive regions then it could bounce back to retest its resistant regions. While in case of bounce back index would face resistances at 32,860pts and it would remain bearish until it would not succeed in closing above 34,000pts.

Asian share markets slipped to two-week lows on Wednesday as the floor fell out from under crude prices, exposing the deep economic damage wrought by the global coronavirus health crisis. Skittish investors sought the safety of government debt as Brent oil futures plunged for a second day to a low last seen almost two decades ago, fueled by a swelling world crude glut. The dizzying dive in oil has turned investors away from stocks, and has given fresh urgency to bearish voices who are bracing for a catastrophic decline in asset prices as the COVID-19 pandemic wrecks the world economy. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.8% while Japan’s Nikkei slumped 1.3%.Read More...

In what appears to be a major fallout from Covid-19, the Federal Board of Revenue (FBR) has linked the collection of the revised target of Rs3.908 trillion for 2019-20 to the resumption of economic activity in Ramazan and Eidul Fitr. The coronavirus-led slowdown and suspension of business activity have heavily hit the revenue collection, causing a massive shortfall. “We will achieve the revised revenue collection target in case of resumption of business operations,” said Member Inland Revenue Policy and Spokesperson Dr Hamid Ateeq Sarwar on Tuesday. He along with Member IR (Operations) Seema Shakil briefed the media over the performance of revenue collection and refunds paid to the exporters despite shortfalls.Read More...

The federal cabinet on Tuesday decided to make public the findings of an inquiry commission report on Independent Power Projects (IPPs) and order their forensic audit. The cabinet formally approved tax exemption for the construction industry, services provided by property developers as well as real estate dealers and agents. The meeting of the cabinet, which was chaired by Prime Minister Imran Khan, decided to send eight million tablets of anti-malaria chloroquine to ‘friendly nations’, namely the United States, the United Kingdom, Saudi Arabia, Qatar, Turkey, Italy and Kazakhstan.Read More...

The country is in danger of running out of life-saving products like vaccines and insulin merely because the National Con­trol Laboratory has stopped the process of certification, according to importers and government officials. They confirmed that the position of chief federal analyst — the signing authority — was vacant since the retirement of the previous incumbent over a month ago. The appointment of his successor has not been notified as yet. The situation, importers feared, could lead to a shortage of key products next week. “Things could become disastrous for the critically ill,” an importer warned.Read More...

parliamentary committee on Tuesday has recommended the government to give preference to SMEs while formulating policy by providing financial incentives. The National Assembly Standing Committee on Finance, Revenue and Economic Affairs was held under the chairmanship of MNA Faiz Ullah. Ministry of finance secretary Naveed Kamran Baloch briefed the Committee about the allocation/utilisation of Rs1200bn (COVID-19 Relief Package) announced by Prime Minister to deal with Corona Virus pandemic. He said that Government has released Rs25 billion to National Disaster Management Authority (NDMA), further Rs50bn for medical equipment and incentives for workers were under process with M/o Health and NDMA. He further informed that Rs15 billion has been allocated for 61 medical items exempted in withholding tax and additional custom duties on import of certain food items including reduction of withholding tax for Utility Stores Corporation supplies.Read More...