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Author: Mrs. Anjum Shahnawaz

  • Stock market gains 592 points on rate cut hope

    Stock market gains 592 points on rate cut hope

    KARACHI: The stock market gained 592 points on Thursday due to broad buying activity on hopes of rate cut in the upcoming monetary policy announcement.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,546 points as against 30,955 points showing an increase of 592 points.

    Analysts at Arif Habib Limited said that the market performed well today, with across the board buying activity.

    E&P, Banks and Cement contributed positively to the points table that showed a jump of 892 points during the session.

    Major reason for general positivity seems to be expectation of rate cut, which had an indication from recent auction of treasury bills that saw yield curve sliding further.

    Market on close, however, saw attrition of ~350 points closing the index to +553 points (unadjusted). E&P stocks saw reversal in prices by end of session. Cement sector led the volumes with 31 million shares, followed by Technology (26.4 million) and Power (22.9 million). WTL led the volumes with 18.3 million shares, followed by KEL (11.7 million) and MLCF (11.1 million).

    Sectors contributing to the performance include Banks (+179 points), Fertilizer (+111 points), Cement (+75 points), Power (+51 points) and E&P (+51 points).

    Volumes increased from 99.6 million shares to 185.8 million shares (+86 percent DoD). Average traded value also increased by 64 percent to reach US$ 51.9 million as against US$ 31.6 million.

    Stocks that contributed significantly to the volumes include WTL, KEL, MLCF, HUBC and FCCL, which formed 33 percent of total volumes.

    Stocks that contributed positively include BAHL (+49 points), LUCK (+48 points), FFC (+42 points), ENGRO (+41 points) and PPL (+39 points). Stocks that contributed negatively include MUREB (-10 points), KTML (-4 points), HASCOL (-2 points), AGIL (-2 points), and SML (-1 point).

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  • Rupee gains 13 paisas against dollar

    Rupee gains 13 paisas against dollar

    KARACHI: The Pak Rupee gained 13 paisas against dollar on Thursday owing to improved inflows of export receipts and workers remittances, dealers said.

    The rupee ended Rs156.18 to the dollar from previous day’s closing of Rs156.31 in interbank foreign exchange market.

    Currency experts said that the inflows had helped the rupee to gain value against the greenback. They said that the rupee was remained stabled during the day due to inflows of export reciepts and workers remittances .

    The foreign currency market initiated in the range of Rs156.15 and Rs156.25. The market recorded day high of Rs156.28 and low of Rs156.18 and closed at Rs156.18.

    The exchange rate in open market also witnessed appreciation in local currency value. The buying and selling of the dollar was recorded at Rs156.00/Rs156.50 from previous day’s closing of Rs156.20/Rs156.70 in cash ready market.

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  • Hub Power declares Rs8.036 billion annual profit, 6.17pc lower than previous year

    Hub Power declares Rs8.036 billion annual profit, 6.17pc lower than previous year

    KARACHI: Hub Power Company Limited (HUBCO) has declared net annual profit of Rs8.036 billion for the period ended June 30, 2019, which is 6.17 percent lower than the profit of Rs8.565 billion in the previous year.

    According to financial statement for year 2019 submitted to Pakistan Stock Exchange (PSX) on Thursday, the company also declared earnings per share at Rs6.70 for the year, which is also lower when compared with EPS Rs7.15 in the last year.

    The total turnover of the company sharply fell to Rs36.028 billion in 2019 as compared with the turnover of Rs76.675 billion. The operating costs have been declined to Rs24.29 billion as compared with Rs66.872 billion.

    The company declared gross profit of Rs11.733 billion in the year 2019, which is 19.68 percent higher than the gross profit of Rs9.803 billion a year ago.

    The company declared profit from operations to the tune of Rs13.236 billion for the year under review as compared with Rs11.022 billion in the last year.

    Finance costs of the company increased to Rs4.96 billion as compared with Rs2.247 billion. This brings the profit before taxation of the company at Rs8.275 billion as compared with Rs8.77 billion of the last year.

    The company paid taxes to the tune of Rs238.523 million in 2019 as compared with Rs209.2 million in the previous year.

  • Income tax refund can be claimed within two years from filing return date

    Income tax refund can be claimed within two years from filing return date

    The Federal Board of Revenue (FBR) has reminded taxpayers that income tax refunds can be claimed within two years from the date of filing the tax return or from the date the tax was paid, whichever is later. This clarification aims to guide taxpayers through the refund process and ensure they comply with deadlines, avoiding any potential loss of entitlement.

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  • SBP to decide key policy rate on Sept 16

    SBP to decide key policy rate on Sept 16

    KARACHI: State Bank of Pakistan (SBP) will decide key policy rate for next two months on Monday, September 16, 2019. The present policy rate is 13.25 percent.

    The central on Thursday said that the Monetary Policy Committee of the SBP will meet on Monday, September 16, 2019 at SBP Karachi to decide about Monetary Policy.

    Later on, SBP will issue the Monetary Policy Statement through a press release on the same day.

    In its meeting on July 16, 2019, the Monetary Policy Committee (MPC) decided to raise the policy rate by 100 basis points to 13.25 percent with effect from July 17, 2019.

    The decision takes into account upside inflationary pressures from exchange rate depreciation since the last MPC meeting on May 20, 2019 and the likely increase in near term inflation from the one-off impact of recent adjustments in utility prices and other measures in the FY20 budget.

    The decision also takes into account downside inflation pressures from softening demand indicators.

    Taking these factors into consideration, the MPC expects average inflation of 11 –12 percent in FY20, higher than previously projected.

    Nevertheless, inflation is expected to fall considerably in FY21 as the one-off effect of some of the causes of the recent rise in inflation diminishes.

  • FBR warns taking legal action against fabricated tobacco license news publication

    FBR warns taking legal action against fabricated tobacco license news publication

    ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday said it has right to take legal action against fabricated news publication regarding grant of track and trace tobacco license.

    “The FBR reserves the right to take legal action against publication of such fabricated and concocted news report,” said a statement.

    The FBR issued a strong rebuttal appearing in press and circulating on Social media regarding issuance of Invitation for License (IFL) FOR “Electronic Monitoring Track and trace System for Tobacco Products.”

    FBR has clarified that the news item is totally baseless and allegations leveled against the Chairman FBR are basically an effort to sabotage fair and open process of licensing in order to give benefit to tax evaders and illicit traders in tobacco industry.

    The news item is negated on basis of following facts:

    The IFL has been issued under section 40C of the Sales Tax Act, 1990 and the Sales Tax Rules, 2006.

    The amendment in the Ruleseere made which were issued much before appointment of Syed Shabbar Zaidi as Chairman, FBR who took charge as chairman FBR on 10.05.2019 which is two and half months after the issuance of the Licensing Rules, 2019.

    A consultant having an international experience and credentials was also hired well before the issuance of IFL after following a transparent process to seek guidance and expert advice with a view to make the process fair and fool proof.

    The IFL was published in local as well as international newspapers in order to make it more transparent and open for all the solution providers. The IFL was also placed on PPRA website and all PPRA Rules are being followed in letter and spirit.

    After the issuance of IFL more than 20 obtained bidding/Licensing documents. No company has submitted the Licensing documents till date as the closing date for submission of documents is 20th September. Hence the question of awarding of license to any company does not arise.

    There is no loss of revenue of the Government of Pakistan as reported in the news item, the FBR clarified.

  • FBR clears Rs15.6 billion sales tax refunds in 8,415 RPOs: Dr. Hafeez Shaikh

    FBR clears Rs15.6 billion sales tax refunds in 8,415 RPOs: Dr. Hafeez Shaikh

    The Federal Board of Revenue (FBR) has cleared Rs 15.6 billion in sales tax refunds against 8,415 refund payment orders (RPOs), marking a significant move to enhance business liquidity and stimulate economic activity in the country.

    (more…)
  • KCCI opposes proposal to extend tenure of FPCCI office bearers

    KCCI opposes proposal to extend tenure of FPCCI office bearers

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has strongly opposed to the proposal regarding extending the tenure of office bearers of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) from one year to three years, a KCCI statement said on Wednesday.

    Vice Chairman Businessmen Group (BMG) & Former President Karachi Chamber of Commerce & Industry (KCCI) Haroon Farooki, General Secretary BMG AQ Khalil and Acting President KCCI Khurram Shahzad, who represented KCCI at a meeting of the Standing Committee on Commerce & Textile held in Islamabad on Wednesday, strongly opposed the proposed Bill to extend the tenure of FPCCI’s Office Bearers from one year to three years which will not be acceptable to the Business & Industrial Community of entire Pakistan.

    The meeting, which was presided over by Chairperson of the Standing Committee ‏‏Mirza Muhammad Afridi, was also attended by PM’s Advisor on Commerce Razzak Dawood and other prominent members of the Standing Committee along with representatives of Chambers of Commerce from different provinces of the country.

    While sharing their opinion over this particular issue, KCCI’s representatives pointed out that the tenure of FPCCI’s President currently lasts for one year but some elements were attempting to extend this term to three years through amendments in relevant laws which was not practical and would be strongly resisted by the business & industrial community.

    “It is going to be a sheer injustice for those Chambers of Commerce who intend to take charge of the apex body but after such an extension of three years, any chamber of commerce from any province of the country will have to wait for more than two decades to reassume the charge of FPCCI’s presidency”, they added.

    Vice Chairman BMG Haroon Farooki stated that the bill proposes amendment in Section 11 of Trade Organization Ordinance (TOO) 2013 which pertains to one year tenure of the Office Bearers but this particular section was not confined to the tenure of FPCCI Office Bearers only as it was also applicable on all other Chambers of Commerce and Trade bodies. “This bill seeking amendment in Section 11 of TOO 2013 is not practically, technically and legally implementable for FPCCI only as it will have an impact on all the trade bodies hence it must be immediately withdrawn”, he added.

    KCCI’s representatives emphasized that the said Bill to extend the tenure of FPCCI Office Bearers should have been consulted with the all the stakeholders prior to bringing it at the Senate for debate and fact-findings. Majority of the business community in fact the entire business community of country was against this bill hence, it should be immediately dismissed, they demanded.

    After listening to KCCI’s point of view and all the reservations expressed by the representatives of other Chambers, the proposer of the Bill and PM’s Advisor Razzak Dawood, while agreeing to KCCI’s viewpoint, immediately withdrew the bill which was warmly welcomed by all the representatives of the business & industrial Community present at the meeting.

  • Rupee gains four paisas despite long holidays

    Rupee gains four paisas despite long holidays

    KARACHI, September 11, 2019 – The Pakistani rupee showed a modest recovery against the US dollar on Wednesday, gaining 4 paisas in the interbank market. This movement came following the reopening of currency markets after an extended break due to holidays, including the regular weekend and public holidays for Ashura-e-Muharram observed on September 9 and 10.

    (more…)
  • Stock market gains 488 points on positive talks on FATF meeting

    Stock market gains 488 points on positive talks on FATF meeting

    KARACHI: The stock market gained 488 points on Wednesday owing to positive talks on conditions of Financial Action Task Force (FATF) at a meeting in Bangkok, Thailand.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 30,954 points as against 30,467 points showing an increase of 488 points.

    Analysts at Arif Habib Limited said that the index fared well on the first day of the short trading week after a long weekend.

    Positive expectations from ongoing FATF meeting in Bangkok and relatively higher international crude prices kept the investors’ interest alive.

    OGDC and PPL led the index by hitting upper circuit and gaining significant volumes, however, both scrips closed below upper circuit.

    The index also drew support from Banking sector, which saw HBL hitting upper circuit and other scrips trading mostly in green.

    Cement, Steel, O&GMCs mostly played on the negative side. Most volume was observed in Cement sector that saw 18.1M shares, followed by E&P (12.2 million) and Technology (11.1 million). Among scrips, MLCF led the volumes table with 11.5 million shares followed by OGDC (8.8 million) and WTL (6.7 million).

    Sectors contributing to the performance include Banks (+207 points), E&P (+163 points), Fertilizer (+81 points), Power (+67 points), Cement (-33 points) and Food (-17 points).

    Volumes increased from 48.2mn shares to 99.6mn shares (+107 percent DoD). Average traded value also increased by 103 percent to reach US$ 31.6 million as against US$ 15.5 million.

    Stocks that contributed significantly to the volumes include MLCF, OGDC, WTL, EFERT and HUBC, which formed 37 percent of total volumes.

    Stocks that contributed positively include HBL (+87 points), OGDC (+77 points), PPL (+68 points), HUBC (+65 points) and MCB (+46 points). Stocks that contributed negatively include LUCK (-11 points), NESTLE (-9 points), FCCL (-8 points), DGKC (-7 points), and MUREB (-6 points).

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