Morning Market Brief 26th Jun. 2020

The Benchmark KSE100 index have generated a daily evening shooting star during last trading session right above its major supportive region of 33,500pts therefore chances of a cheat pattern occurrence have become evident during current trading session. It's recommended to stay cautious because index would try to open with a positive gap and would start a rally towards 34,100pts and 34,500pts during current trading session, mean while previous weekly evening star formation would be violated if index would succeed in closing above 34,100pts. It's recommended to start buying on dip with strict stop loss of 33,500pts for day trading and avoid initiating short positions until index gave a reversal sign on hourly chart. While on flip side in case of bearish pressure index would try to find supports at 33,500pts and 33,000pts and it would remain bullish until it would not succeed in closing below 33,000pts.

Asian stocks were set to gain on Friday, as global sentiment remained doggedly upbeat despite increased volatility and rising new coronavirus infections, with Wall Street pushed higher by a loosening in bank regulations.Australian S&P/ASX 200 futures YAPcm1 rose 1.21% in early trading. Japan's Nikkei 225 futures NKc1 added 0.13%. Hong Kong's Hang Seng index futures .HSI HSIc1 lost 0.93%. Hong Kong was closed for a public holiday on Thursday and markets in mainland China continue their break on Friday. MSCI’s gauge of stocks across the globe .MIWD00000PUS gained 0.45%. Coronavirus cases across the United States have soared in recent days, with Texas pausing its re-opening as COVID-19 infections and hospitalizations surged in the state. On Wall Street, the Dow Jones Industrial Average .DJI rose 1.18%, the S&P 500 .SPX gained 1.10% and the Nasdaq Composite .IXIC added 1.09%. The gains were due in part to earlier announcements from U.S. regulators loosening rules to allow banks to make larger investments in riskier vehicles such as venture capital funds..Read More...

The State Bank of Pakistan (SBP), in a meeting of its monetary policy committee (MPC) on Thursday, decided to slash the country's policy rate by 100 points to seven per cent, the fifth time the central bank has reduced the interest rate in the last 100 days. The decision was taken in light of the improved inflation outlook, "while the domestic economic downslide continues and downside risks to growth have increased", said a statement released by the SBP. The rate cut is the fifth since the coronavirus pandemic hit the global economy, with the total reduction being 625 basis points. The committee noted that risks to the global outlook are heavily skewed to the downside and the path of recovery remains uncertain. "The MPC also noted that in its update of the World Economic Outlook (WEO) released yesterday, the IMF downgraded its 2020 global growth forecast further to -4.9 per cent, 1.9 percentage points lower than in April, and projected a more gradual recovery than previously anticipated," the statement reads.Read More...

The Economic Coordination Committee (ECC) of the Cabinet has approved revised standard security package documents such as implementation agreements (GOPIA), GOP guarantee, power purchase agreement (PPA), water use agreement (WUA) under Policy for Power Generation Projects 2002 for the hydropower projects in the private sector. The ECC meeting, chaired by Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh, also decided in favour of removal/reduction of regulatory duty on the smuggling prone items, including fabric, sanitary ware, LED/TVs, padlocks, blankets, electorodes etc. The Security Package Documents for China Pakistan Economic Corridor (CPEC) Hydropower Projects includes power purchase agreement, water utilization charges and implementation agreement. The decision would bolster confidence of the investors and fast track completion of hydropower projects. This will help in mitigating protracted negotiations with the private investor thus paving way for smooth and timely implementation of hydropower projects.Read More...

The Lahore Chamber of Commerce & Industry has urged the Federal Board of Revenue to extend the last date of Tax Amnesty Scheme till August 31st of this year. In a letter, LCCI President Irfan Iqbal Sheikh said that economy is going through a challenging phase due to the outbreak of COVID-19 pandemic. The businesses across all segments are in a distress and facing huge financial losses due to the disruptions in business activities. He said that although the FBR has clarified that the due date for payment of outstanding taxes under the Asset Declaration Scheme 2019 will not be extended beyond June 30th 2020 but keeping in view the severe liquidity crunch, there is need to extend this date till August 31st 2020. He said that that extension would be a good step to relieve pressure on the economy as it would generate additional revenue for the government while businessmen can declare their assets or income and they cannot be asked about their source. “An extension in Tax Amnesty Scheme 2019, coupled with awareness campaign, can help highest number of businessmen to avail full benefit of this good initiative”, the LCCI President said and added that this scheme is beneficial both for the government and the business community as it would help promote documented economy besides giving business doing people an opportunity to legalize their undeclared assets. “We have always demanded for broadening the tax net and lowering the tax rate. We expect that this Tax Amnesty Scheme will go a long way in achieving the desired results.Read More...

The credibility of the Civil Aviation Authority (CAA) and the Pakistan International Airlines (PIA) has taken a massive hit after the International Air Transport Association (IATA) on Thursday expressed concern over the ‘serious lapse in the licensing and safety oversight by the aviation regulator’. Amid the aviation crisis, the PIA management decided to ground 150 (one-third of its) pilots and started relieving them from flight rosters for allegedly possessing ‘dubious licences’, while asking the CAA to urgently provide the list of all those PIA pilots who allegedly had fake/suspicious commercial pilot licences. The controversy drew global attention after the federal Minister for Aviation Ghulam Sarwar Khan in the National Assembly declared that 150 pilots of the national flag carrier had fake licences.Read More...