Daily news:16th June 2020

Good Morning

With 62 new deaths due to novel coronavirus across the province during the last 24 hours, Punjab has become the first province to cross 1,000 deaths taking the provincial tally to 1,031.With spike in corona positive cases in Lahore, the provincial government has decided to start complete lockdown for 15 days from midnight Tuesday. The general public has criticized the federal budget 2020-21 for carrying no genuine relief to the masses to help them meet the challenges of inflation at the times when Covid-19 outbreak is wreaking havoc in the country. Oil prices dipped on Tuesday on jitters that a rise in coronavirus infections around the world could hurt fuel demand, but hopes that production cuts could be extended kept declines in check.

Market View: The KSE100 lost 786.7 points in the last trading session, to close at 33,824.5 points. We expect bearish trend to continue amid fresh lockdown and increasing number of covid-19 deaths. 

Commodities:

Brent oil (USD/bbl): 39.66 (-0.15% D/D)

WTI Crude oil (USD/bbl): 37.10 (-0.16% D/D)

Gold (USD/oz): 1,737.8 (+0.61% D/D)

National News

Punjab to start lockdown in several areas of Lahore

With 62 new deaths due to novel coronavirus across the province during the last 24 hours, Punjab has become the first province to cross 1,000 deaths taking the provincial tally to 1,031.With spike in corona positive cases in Lahore, the provincial government has decided to start complete lockdown for 15 days from midnight Tuesday

https://www.brecorder.com/news/1004675/midnight-today-punjab-to-start-lockdown-in-several-areas-of-lahore

Rs 27 billion from 3G/4G licenses earmarked

ISLAMABAD: The government has budgeted Rs27 billion from 3G/4G licenses under the head of non-tax revenue for the next fiscal year 2020-2021 against Rs52.73 billion budgeted for the current fiscal year, which was later revised to Rs125 billion, but the matter of licenses renewal is in the court.

https://www.brecorder.com/news/1004618/rs-27-billion-from-3g4g-licenses-earmarked

Naya Pakistan Housing Scheme: PM for finalising suggestions in consultation with banks

ISLAMABAD: Prime Minister Imran Khan on Monday chaired a meeting to review the progress of government initiatives under the Naya Pakistan Housing Scheme for the construction of houses for low-income people and the development of the construction sector.

https://www.brecorder.com/news/1004623/naya-pakistan-housing-scheme-pm-for-finalising-suggestions-in-consultation-with-banks

People term budget disappointing

HYDERABAD: The general public has criticized the federal budget 2020-21 for carrying no genuine relief to the masses to help them meet the challenges of inflation at the times when Covid-19 outbreak is wreaking havoc in the country.

https://www.brecorder.com/news/1004637/people-term-budget-disappointing

Private equity, venture capital fund management services: Registration mandatory for anyone to be engaged in business

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has made registration mandatory for anyone to be engaged in business of private equity and venture capital fund management services. The SECP has amended Private Funds Regulations, 2015 through an SRO 545 (I)/2020 issued here on Monday.

https://www.brecorder.com/news/1004619/private-equity-venture-capital-fund-management-services-registration-mandatory-for-anyone-to-be-engaged-in-business

Punjab government’s total debt stands at Rs 945.5 billion

LAHORE: One of the challenges Punjab to face amid Covid-19 pandemic is to manage its debt operations to finance large and growing development needs without impairing its capacity to repay the debt.

https://www.brecorder.com/news/1004655/punjab-governments-total-debt-stands-at-rs-9455-billion

CPEC energy projects: China agrees to resolve issues: Umar

ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Asad Umar said that China had agreed for bilateral mechanism for resolving issues pertaining to the China-Pakistan Economic Corridor (CPEC) energy projects. The minister expressed these views, while interacting with journalists on Monday.

https://www.brecorder.com/news/1004673/cpec-energy-projects-china-agrees-to-resolve-issues-umar

APTMA says budget has failed to address critical issues

KARACHI: The All Pakistan Textile Mills Association (APTMA) has said that the proposed budget for FY2020-21 has completely failed in addressing serious industry issues in the light of the worldwide crisis created by Covid-19. This is likely to lead to large-scale unemployment and closures as the market dynamics have changed significantly in the midst of the Covid-19 crisis.

https://www.brecorder.com/news/1004677/aptma-says-budget-has-failed-to-address-critical-issues

Finance Bill 2020: Body formed to address ‘anomalies’

ISLAMABAD: The federal government has constituted a three-member ‘anomalies’ committee headed by Prime Minister’s Advisor on Commerce and Investment, Abdul Razak Dawood to address the anomalies in the Finance Bill 2020.

https://www.brecorder.com/news/1004678/finance-bill-2020-body-formed-to-address-anomalies

Tax relief package envisaged

LAHORE: With the focus on creating a balance between relief and revenue generation for the government, the Punjab Finance Bill 2020 envisages tax relief package for the business community as well as the public.

https://www.brecorder.com/news/1004679/tax-relief-package-envisaged

Rs 284.2 billion allocated for health sector

LAHORE: With the focus on tackling Covid-19 and other health challenges, the Punjab government has allocated an amount of Rs 284.2 billion for the health sector in its budget 2020-21 against Rs 279 billion allocated in last FY 2019-20.

https://www.brecorder.com/news/1004680/rs-2842-billion-allocated-for-health-sector

Reduction in oil prices: PM directs CSs to formulate joint strategy

ISLAMABAD: Prime Minister Imran Khan has directed all the provincial chief secretaries to formulate a joint strategy to ensure that the relief given in reduction in oil prices reaches the common man.

https://www.brecorder.com/news/1004683/reduction-in-oil-prices-pm-directs-css-to-formulate-joint-strategy

Banking sector to remain resilient to COVID-19: State Bank

The banking sector should remain resilient to the COVID-19 shock under most reasonable shock scenarios, reflecting the strong capital and liquidity positions of the majority of banks,” the SBP said in the financial stability review 2019 report. The SBP said financial sector stability started to improve towards the end of last year after some strains due to sluggish growth during the early part of the year.

https://www.thenews.com.pk/print/673136-banking-sector-to-remain-resilient-to-covid-19-state-bank

Rs 2.24 trillion Punjab budget unveiled

LAHORE: Punjab Finance Minister Makhdoom Hashim Jawan Bakhat on Monday presented the Punjab budget for the fiscal year 2020-21 with an outlay of Rs 2240.7 billion in the provincial assembly.

https://www.brecorder.com/news/1004686/rs-224-trillion-punjab-budget-unveiled

Take-and-pay policy advised to recover massive ‘overpayment’ to IPPs

KARACHI: Government should go for a rather straight ‘take-and-pay’ policy vis-à-vis independent power producers (IPPs) that have clearly been paid beyond their services due to rupee depreciation and capacity payments under the unjustified agreements, head of an employers’ association said.

https://www.thenews.com.pk/print/673139-take-and-pay-policy-advised-to-recover-massive-overpayment-to-ipps

Govt aims to increase coal share by 30pc in energy mix

KARACHI: Considering the negligible share of coal in Pakistan’s current energy mix, the Economic Survey has called for increasing its share in the energy mix by up to 30 percent by the year 2030.

https://www.thenews.com.pk/print/673141-govt-aims-to-increase-coal-share-by-30pc-in-energy-mix

International News

Oil prices ease as coronavirus infections rise

Oil prices dipped on Tuesday on jitters that a rise in coronavirus infections around the world could hurt fuel demand, but hopes that production cuts could be extended kept declines in check.

https://www.cnbc.com/2020/06/16/oil-markets-coronavirus-in-focus.html

Gold steady as dollar eases; rising equities cap upside

Gold steadied on Tuesday supported by a weaker U.S. dollar, which fell after the Federal Reserve announced it would buy individual corporate bonds in the secondary market, although an uptick in risk appetite limited bullion’s advance.

https://www.cnbc.com/2020/06/16/gold-markets-dollar-in-focus.html

Japan up 3% as Asia stocks jump following overnight Wall Street comeback

Shares in Asia jumped in Tuesday morning trade following a dramatic bounce back overnight on Wall Street.The Nikkei 225 in Japan surged 3.11% in morning trade while the Topix index advanced 2.61%. Over in South Korea, the Kospi soared 3.88% and the Kosdaq index surged 4.54%.

https://www.cnbc.com/2020/06/16/asia-markets-coronavirus-central-banks-currencies-in-focus.html

KASB Research

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