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Author: Mrs. Anjum Shahnawaz

  • Stocks decline by 284 points on profit-taking

    Stocks decline by 284 points on profit-taking

    KARACHI: The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) ended down by 284 points on Tuesday. The stocks fell due to profit-taking observed during the day, analysts said.

    The index closed at 47,828 points as against the previous day’s closing of 48,112 points, showing a decline of 284 points.

    The analysts at  Arif Habib Limited said that after posting an increase in the past three consecutive sessions, the index saw profit booking across the board, with PSO being the prominent one due to lower than anticipated payout despite high earnings.

    Similarly, Cement, Steel and E&P sectors saw selling activity which kept the index under pressure.

    The technology sector showed mixed reactions with AVN, NETSOL, and SYS floating above LDCPs. Among scrips, WTL led the volumes with 43.6 million shares, followed by TELE (30.9 million) and GGL (25.5 million).

    Sectors contributing to the performance include Cement (-64 points), Fertilizer (-60 points), Banks (-60 points), O&GMCs (-52 points) and E&P (-36 points).

    Volumes slightly declined from 397.6 million shares to 394.9 million shares. Average traded value also declined by 8 per cent to reach US$ 82.8 million as against US$ 89.9 million.

    Stocks that contributed significantly to the volumes include WTL, TELE, GGL, BOP and ANL, which formed 36 per cent of total volumes.

    Stocks that contributed positively to the index include PSEL (+37 points), HUBC (+22 points), MTL (+7 points), ARPL (+6 points) and PIBTL (+5 points). Stocks that contributed negatively include ENGRO (-50 points), PSO (-41 points), MEBL (-33 points), PPL (-29 points) and LUCK (-28 points).

    KSE-100 index gains 512 points on positive trading
  • Tarin orders release refunds to edible oil importers

    Tarin orders release refunds to edible oil importers

    ISLAMABAD: Finance Minister Shaukat Tarin on Monday directed tax authorities to expeditiously release refunds to importers of edible oil importers.

    He issued the directive at a meeting with a delegation of Pakistan Vanaspati Manufacturers Association (PVMA).

    The finance minister directed the chairman of Federal Board of Revenue (FBR) to assure expeditious disbursement of refunds to the importers of vegetable ghee/oil to ensure availability of funds.

    Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, SAPM on Finance and Revenue Dr. Waqar Masood, Secretary M/o Industries and Production, Chairman FBR and other senior officers participated in the meeting.

    While welcoming the Chairman PVMA, the Finance Minister expressed his concern over the rise in the prices of edible oil/ghee in domestic markets over the period of time.

    The Chairman PVMA briefed the Finance Minister about the international hike in prices of palm and soyabean oils particularly during ongoing COVID-19 pandemic. The international prices kept fluctuating between the range of $1100 – 1257 per ton and the domestic market drives rates from the prevailing international prices and the dollar value.

    The exchange rate also has a significant impact on edible oil prices in the country, he added.

    While taking stock of the situation, the Finance Minister urged PVMA to adopt market-based solutions and bring down prices in the domestic market in line with the international price trend.

    If there is a slight dip in the international market, it must be reflected in the domestic prices so that the consumers get relief amid highly fluctuating edible oil market.

    The finance minister stressed the need to evaluate the whole situation rationally and urged PVMA to come up with sustainable pricing mechanism in collaboration with the Ministry of Industries & Production and FBR.

    He constituted a committee comprising representatives of PVMA, Secretary Ministry of Industries and Production and Chairman FBR to workout arrangement for streamlining collection of sales tax and a predictable pricing formula. The Chairman PVMA assured full cooperation in providing maximum relief to the domestic consumers by absorbing international pressure on prices in the edible oil sector.

  • KSE-100 index gains 512 points on positive trading

    KSE-100 index gains 512 points on positive trading

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gained 512 points on Monday as market remained positive during the day.

    The index closed at 48,112 points as against previous closing on Friday at 47,600 points, showing an increase of 512 points.

    Analysts at Arif Habib Limited said that the market traded in the positive zone throughout the session, adding a total of 545 points during the session and closing near the session’s high with net 512 points.

    E&P sector, which was a laggard in the past year or so and particularly in the past month or so, performed well on the back of an increase of +3 per cent in international crude oil prices today.

    Besides, O&GMCs saw PSO sprinting due to its financial results, which were scheduled to be announced, but could not by sessions end. Besides, Technology stocks ramped up taking cue from Series B fund raising of Airlift that helped improve valuation multiples of listed entities in Tech space. Among scrips, HUMNL topped the volumes with 35.4 million shares, followed by BOP (22.2 million) and GGL (19.8 million).

    Sectors contributing to the performance include Banks (+167 points), E&P (+143 points), Fertilizer (+41 points), Misc (+36 points) and O&GMCs (+34 points).

    Volumes increased from 299.1 million shares to 396.2 million shares (+33 per cent DoD). Average traded value also increased by 13 per cent to reach US$ 89.9 million as against US$ 79.5 million.

    Stocks that contributed significantly to the volumes include HUMNL, BOP, GGL, TPLP and ANL, which formed 27 per cent of total volumes.

    Stocks that contributed positively to the index include MEBL (+94 points), PPL (+58 points), OGDC (+46 points), ENGRO (+42 points) and PSEL (+35 points). Stocks that contributed negatively include HUBC (-21 points), COLG (-10 points), MLCF (-9 points), EFERT (-7 points) and FCCL (-4 points).

    Weekly Review: market likely to stay positive
  • IMF starts distributing largest ever $650 billion allocation

    IMF starts distributing largest ever $650 billion allocation

    Washington, DC: International Monetary Fund (IMF) on Monday started distribution of the largest ever allocation of $650 billion to provide additional liquidity to the global economic system.

    Ms. Kristalina Georgieva, Managing Director of the IMF made the following statement on Monday:

    “The largest allocation of Special Drawing Rights (SDRs) in history—about US$650 billion—comes into effect today. The allocation is a significant shot in the arm for the world and, if used wisely, a unique opportunity to combat this unprecedented crisis.

    “The SDR allocation will provide additional liquidity to the global economic system – supplementing countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt. Countries can use the space provided by the SDR allocation to support their economies and step up their fight against the crisis.

    “SDRs are being distributed to countries in proportion to their quota shares in the IMF. This means about US$275 billion is going to emerging and developing countries, of which low-income countries will receive about US$21 billion – equivalent to as much as 6 percent of GDP in some cases.

    “SDRs are a precious resource and the decision on how best to use them rests with our member countries. For SDRs to be deployed for the maximum benefit of member countries and the global economy, those decisions should be prudent and well-informed.

    “To support countries, and help ensure transparency and accountability, the IMF is providing a framework for assessing the macroeconomic implications of the new allocation, its statistical treatment and governance, and how it might affect debt sustainability. The IMF will also provide regular updates on all SDR holdings, transactions, and trading – including a follow-up report on the use of SDRs in two years’ time.

    “To magnify the benefits of this allocation, the IMF is encouraging voluntary channeling of some SDRs from countries with strong external positions to countries most in need. Over the past 16 months, some members have already pledged to lend US$24bn, including US$15 billion from their existing SDRs, to the IMF’s Poverty Reduction and Growth Trust, which provides concessional loans to low-income countries. This is just a start, and the IMF will continue to work with our members to build on this effort.

    “The IMF is also engaging with its member countries on the possibility of a new Resilience and Sustainability Trust, which could use channeled SDRs to help the most vulnerable countries with structural transformation, including confronting climate-related challenges. Another possibility could be to channel SDRs to support lending by multilateral development banks.

    “This SDR allocation is a critical component of the IMF’s broader effort to support countries through the pandemic, which includes: US$117 billion in new financing for 85 countries; debt service relief for 29 low-income countries; and policy advice and capacity development support to over 175 countries to help secure a strong and more sustainable recovery.”

    IMF projects Pakistan’s GDP growth at 5pc in FY24
  • SBP issues customers exchange rates on August 23

    SBP issues customers exchange rates on August 23

    KARACHI, August 23, 2021: The State Bank of Pakistan (SBP) has unveiled the latest exchange rates for customers on Monday, August 23, 2021.

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  • Record improvement in foreign investors’ confidence

    Record improvement in foreign investors’ confidence

    KARACHI: The business confidence score (BSC) of foreign investors operating in Pakistan have witnessed a record improvement.

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  • Multan Customs auctions confiscated vehicles on Aug 26

    Multan Customs auctions confiscated vehicles on Aug 26

    ISLAMABAD: The Directorate of Intelligence and Investigation, Customs, Multan has announced public auction of confiscated vehicles on August 26, 2021 at state warehouse of the directorate.

    The directorate will auction the following confiscated vehicles:

    01. Honda CRZ (Hybrid) Car, Model 2010, Registration No. LEH-7082, Chassis No. ZFI-1018503

    02. Suzuki Pickup, Model Not Available, Registration No. W-4404/Peshawar, Chassis No. DB51T-145918

    03. Toyota Prius Car, Model 2010, Registration No. GP-1252, Chassis No. ZVW30-1311093

    04. Toyota Land Cruiser (Prado), Model 1998, Registration No. BG-1315/Sindh, Chassis No. VZJ95-0039067

    05. Honda Inspire Car, Model 2004, Registration No. NIL, Chassis No. UCI-1006426

    06. Toyota Altis Car, Model 2015, Registration No. CZ-482/Islamabad, Chassis No. MR053REH205282314

    07. Toyota Vitz Car, Model 2003, Registration No. LE-12-569, Chassis No. SCP10-0413359

    08. Honda Civic Reborn Car, Model 2007, Registration No. BT-051/Islamabad, Chassis No. JHMFD16308S212954

    09. Toyota Corolla “X” Car, Model 2006, Registration No. JF-3663/Sindh, Chassis No. MR053ZEC107117449

    10. Toyota Probox Car, Model 2007, Registration No. AYA-996/Sindh, Chassis No. NCP51-0175950

    11. Toyota Fielder Car, Model 2004, Registration No. DE-610/ICT, Chassis No. NZE121-0302181

    12. Toyota Fielder Car, Model 2002, Registration No. AHF-185/ICT, Chassis No. NZE121-0108762

    13. Toyota Vitz Car, Model 2000, Registration No. BRO-8422, Chassis No. SCP10-0080694

    14. Toyota Prius Car, Model 2009, Registration No. GP-8650, Chassis No. ZVW30-5023030

    15. Toyota Passo Car, Model 2011, Registration No. ACY-885/ICT, Chassis No. KGC30-0031237

    Lahore customs to auction used cars on August 25
  • Tax rates on purchase of motor car during 2021-2022

    Tax rates on purchase of motor car during 2021-2022

    The Federal Board of Revenue (FBR) in Pakistan has released the updated rates of withholding tax on the purchase of motor cars for the fiscal year 2021-2022.

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  • FBR’s appeal in bogus sales tax refunds rejected

    FBR’s appeal in bogus sales tax refunds rejected

    An appeal of the Federal Board of Revenue (FBR) has been rejected by the President of Pakistan in issuance of bogus refund cases.

    President Dr Arif Alvi on Sunday disposed of 42 representations of the FBR in cases of bogus sales tax invoices, worth over Rs 1.2 billion. 

    The FBR had filed the representations with the President of Pakistan assailing the orders of the Federal Tax Ombudsman (FTO) passed in suo moto cases, in which bogus sales tax refunds were reimbursed fully or partially by the delinquent officials of the FBR to the fake claimants.

    The huge scam was unearthed by FBR’s Directorate General Intelligence & Investigation-Inland Revenue and the Red Alerts were issued to the concerned field formations. However, no action was initiated against the FBR officials and the fake claimants.

    The FTO on taking suo moto notice of the matter had issued directions to the FBR to investigate and identify the officials involved in verification of the registered persons (RPs) and initiate a disciplinary action.

    In pursuance of the FTO’s recommendations and also the previous orders of the President of Pakistan passed in similar cases, the FBR constituted six fact-finding inquiry committees to deal with 130 suo moto cases relating fake refund claims.

    The Terms of Reference (ToR) of the committees were meant to identify the wrong-doings and involvement of officials in each case, and fix responsibility. Also, these committees were tasked to prepare a draft charge sheet and statement of allegations with respect to each official and submit a report to the Board within 30 days.

    President Alvi, in view of the findings of the committees, disposed of the representations of the FBR pertaining to the cases in which full or partial refunds were paid fraudulently.

    He directed the FBR for submission of a monthly implementation report to the Federal Tax Ombudsman’s Secretariat till the completion of the action on each case.

    He also ordered to afford an opportunity of show-cause and hearing to the official in case of any departmental action proposed against him, to satisfy the requirement of due process and the principles of natural justice.

    Criminal proceedings against officials of RTO-II Karachi in fake sales tax refunds ordered
  • Weekly Review: market likely to stay positive

    Weekly Review: market likely to stay positive

    KARACHI: The stock market likely to stay positive in the upcoming week owing to falling global commodity prices and ease in coronavirus cases.

    Analysts at Arif Habib Limited. said that the market to remain positive in the upcoming week attributable to crashing global commodity prices and the ongoing result season which will keep specific companies under limelight.

    On the other hand, decline in infection ratio of the novel coronavirus in Pakistan and slowdown in global oil prices would release pressure from external account.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.7x (2021) compared to Asia Pac regional average of 16.1x while offering a dividend yield of 6.6 per cent versus 2.4 per cent offered by the region.

    This week trading activity commenced on a negative note amid: i) Geopolitical uncertainty given crisis in Afghanistan and its potential spill over in Pakistan, ii) Closure of borders that connects trade activity with Afghanistan, and iii) less trading days in the week owed to religious activity.

    However, trading activity picked pace on the back of peaceful takeover Kabul falls, ii) decline in international commodity prices, iii) Reopening of borders with Afghanistan as a result trading activity witnessed a drastic jump, and iv) slowdown in Covid-19 infection ratio.

    As a result, the KSE-100 index closed at 47,600 points, up by 430 points or 0.91 per cent WoW.    

    Contribution to the upside was led by i) Cements (151 points), ii) Commercial Banks (86 points), iii) Power Generation and Distribution (72 points), iv) Oil and Gas Marketing Companies (65 points), and v) Fertilizer (41 points). Scrip-wise major gainers were MEBL (73 points), HUBC (62 points), PSO (57 points), DGKC (40 points), and MLCF (36 points). Whereas, scrip-wise major losers were PPL (18 points), KTML (16 points), NESTLE (11 points), PSEL (11 points) and MARI (10 points).  

    Foreigners offloaded stocks worth of USD 10.82 million compared to a net buy of USD 3.95 million last week. Major selling was witnessed in All Other Sectors (USD 10.79 million) and Cements (USD 2.53 million). On the local front, buying was reported by Companies (USD 7.78 million) followed by Mutual Funds (USD 5.87 million). That said, average daily volumes and traded value for the outgoing week were down by 13 per cent and 4 per cent to 266 million shares and USD 70 million, respectively.