Morning Market Brief 29th Jun. 2020
Technical Overview
The Benchmark KSE100 index is trying to establish some ground above its major supportive region of 33,500pts since last week but selling pressure is still intact in 34,000pts region but it's expected that today index would again try to close above its initial resistant region of 34,000pts, mean while it would try to target 34,200pts and 34,340pts but its recommended to stay cautious until index succeeds in closing above 34,500pts. Current index is being capped by a rising trend line along with several horizontal resistant regions and it would remain under pressure until it would not succeed in closing above this trend line. Meanwhile daily momentum indicators are changing their direction towards bearish side and if these would succeed to generate a bearish crossover on same time then index would start sliding downward, closing below 33,500pts would push index towards 33,000pts.
Regional Markets
Asia stocks wary as coronavirus threatens economic reopening
Asian share markets began the week with a cautious tone on Monday as the relentless spread of the coronavirus finally made investors question their optimism on the global economy, benefiting safe harbour bonds and the U.S. dollar. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6% and further away from a four-month top hit last week. Japan’s Nikkei shed 1.3% and Chinese blue chips 0.6%. In a more promising sign, E-Mini futures for the S&P 500 recouped their early losses to edge up 0.3% and EUROSTOXX 50 futures added 0.2%. FTSE futures dipped 0.2%. Wall Street had faltered on Friday as some U.S. states reconsidered their reopening plans. The global death toll from COVID-19 reached half a million people on Sunday, according to a Reuters tally.Read More...
Business News
Ogra finds fault with handling of oil crisis
Amid controversies swirling around petroleum crisis and pricing, the Oil and Gas Regulatory Authority (Ogra) has found fault with official handling of the demand and supply mechanism, leading to countrywide shortages, hoarding and black marketing of oil by market players. In a detailed report submitted to the federal cabinet, Ogra also challenged the position of the Ministry of Energy Petroleum Division (MEPD) that as the regulator it was responsible for ensuring 20-day stock at all times. The regulator quoted a series of rules and laws to claim that maintenance of stock and smooth supply throughout the country was the responsibility of the petroleum division and the director general oil under the MEPD.Read More...
AGP unearths Rs270bn irregularities, embezzlement in federal ministries
The Auditor General of Pakistan (AGP) has unearthed misappropriation and embezzlement of public funds in various ministries to the tune of over Rs12 billion, with irregularities of government funds amounting to Rs258bn. The AGP’s report covers the fiscal year 2018-19 — the first year of the Pakistan Tehreek-i-Insaf government — and recommends strict action, including references, to investigation agencies against those responsible. The AGP has finalised its report on Audit Year 2019-20 and it would be submitted to parliament and the president in a couple of days. The report also disclosed that record for a number of entities and accounts was not given to audit teams in violation of rules.Read More...
Jump in oil rates to wipe up relief of markup rate cut to industry
The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has lashed out at the government for increasing prices of petroleum products, in an extraordinary and unexpected move by up to 66 percent, which would lead to increasing cost of production and cost of doing business as well. PHMA vice chairman Shafiq Butt, in a statement issued here on Saturday, argued that the high cost of doing business is already hindering Pakistan in achieving its export target. However, he appreciated the State Bank of Pakistan’s decision to lower the discount rate by 100 basis points, bringing it to 7 percent, which will spur the economic activity slowed down by the coronavirus outbreak.Read More...
Apparel industry wants operations also on Saturdays to complete export orders
The Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has urged the government to exempt the export-oriented units in Punjab from lockdown restrictions on Saturdays too, besides allowing them to work in two shifts to complete their export orders under full SOPs. In a joint statement issued here, PRGMEA regional chairman Sohail A. Sheikh and chief coordinator Ijaz A. Khokhar observed that the export-oriented units are fully conscientious of Covid-19 and are strictly following the standard operating procedures of the government. He said that the implementation of the social distancing during industrial operations can be observed in a better way in two shifts without reducing the size of the workforce to avoid massive unemployment in this crucial time.Read More...
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