Morning Market Brief 5th Jun. 2020

The Benchmark KSE100 index is being caged inside a rising wedge on daily chart and have formatted an evening shooting star inside that wedge after getting resistance from a strong horizontal resistant region during last trading session. It's recommended to wait for confirmation of this evening shooting star by closing of index below 34,000pts before initiating massive short positions. If index would not succeed in confirmation of bearish trend by closing below 34,000pts during current trading session then it would not succeed in breakout of its current rising wedge in downward direction and mean while its evening shooting star would be considered a cheat pattern. While if index would succeed in sliding below 34,000pts then initial supportive region would fall at 33,580pts where it would try to find some ground at a horizontal supportive region. On longer run daily closing below 34,000pts would push index into bearish zone which may lead it towards 32,500pts if this bearish sentiment would prevail. Daily momentum indicators have started losing strength and they would enter into bearish zone with today's closing.

While on flip side if index would succeed in maintaining above 34,000pts till day end today then bulls would start taking control of market and to neglect impact of evening shooting start index would create a bullish engulfing or piercing line formation. In case of bullish pull back index would face initial resistances at 34,500pts and 34,760pts where a horizontal resistant region and resistant trend line of its current wedge would try to push index downward again.

Asian stocks were set to hold tight ranges on Friday after a mixed Wall Street session and as investors awaited key U.S. jobs data while sustained hopes about a global economic recovery kept pressure on the safe-haven dollar. The week’s global equity rally lost some steam on Thursday as traders took winnings from seven days of gains, backing away ahead of Friday’s nonfarm payrolls data, which is expected to show further deterioration in the U.S. jobs market. Australian S&P/ASX 200 futures YAPcm1 lost 0.2% in early trading while Japan’s Nikkei 225 futures NKc1 slipped 0.4%. Hong Kong's Hang Seng index futures .HSI HSIc1 lost 0.55%. E-mini futures for the S&P 500 EScv1 rose 0.14%.Read More...

The export-oriented industry of Sialkot, including the apparel sector, has reiterated its demand of restoring zero-rating regime for the five exporting sectors, expressing fear that $2.5 billion foreign exchange earning industry may suffer 25-30 per cent dent in export in absence of this facility. The representatives of five zero-rated export sectors’ bodies, including the Pakistan Sports Goods Manufacturers & Exporters Association, Pakistan Gloves Manufacturers & Exporters Association, Surgical Instruments Manufacturing Association of Pakistan, Pakistan Leather Garments Manufacturers & Exporters Association, Pakistan Hosiery Manufacturers & Exporters Association and Sialkot Chamber of Commerce and Industry held a meeting with Pakistan Readymade Garments Manufacturers and Exporters Association chief coordinator Ijaz Khokhar and regional chairman Soahil A. Sheikh. They expressed their serious concerns over severe liquidity crunch owing to non-payment by the international buyers for an indefinite period amidst worldwide lockdown due to pandemic.Read More...

The Cabinet Committee on Energy (CCOE) on Thursday approved the proposals of Petroleum Division to make imports of diesel and petrol compliant with Euro-V standard for captive power plants. These products will have a reduced environmental impact due to lesser Sulfur content as well as lower emissions. The meeting of CCOE was held here under the Chairmanship of Minister for Planning and Development Asad Umar. This decision would help reduce the pollution levels especially the smog problem faced in the plain areas of Pakistan in winters. Petroleum Division would also work with the inland refineries to make them compliant with the Euro-V standard by the end of this year. The CCOE decided to set 1st of August 2020 as a deadline by which all the OMCs will ensure import of Euro-V compliant petrol only. It also agreed to make all imports of diesel compliant with Euro-V specification from January 2021 based on availability of supplies. Oil and Gas Regulatory Authority (OGRA) and OCAD would work together to formulate the detailed mechanism in this regard. CCOE also approved the minimum efficiency benchmarks for captive power plants.Read More...

Pakistan’s trade deficit has contracted by 27.77 per cent in eleven months (July to May) of the current fiscal year due to decline in exports as well in imports. The country’s trade deficit has recorded at $21.058 billion in July-May period of FY20 as compared to $29.154 billion in the corresponding period of the previous year, according to the latest data of Pakistan Bureau of Statistics (PBS). The trade deficit has contracted due to massive decline in imports and exports. The country’s exports have reduced by 6.87 per cent to $19.796 billion in July-May period of FY20 from $21.256 billion in same period of last year. Similarly, Pakistan’s imports have also declined by 18.96 per cent to $40.854 billion in eleven months of the ongoing financial year from $50.41 billion in corresponding months of the previous year. Read More...

Various Countries and donors have pledged around $168 million to fight locust attack in Pakistan. The agro-economic development lies in structural reforms, Federal Minister for National Food Security and Research, Syed Fakhar Imam, said on Thursday while chairing third meeting of Agricultural Development Forum at FAO office, Islamabad. Federal Minister made it clear that agricultural development can only be achieved by revamping agriculture technology, reorienting agriculture research, transfer of technology and promoting organic farming. During the briefing FAO officials mentioned that the Government of Pakistan has been taking numerous anticipatory actions in collaboration with FAO, in coordination with neighboring countries, and with the support of international partners to address this threat and be prepared for a timely and effective response.Read More...