Pkrevenue.com

Author: Faisal Shahnawaz

  • Equity market gains 208 points in narrow band trading

    Equity market gains 208 points in narrow band trading

    KARACHI: The equity market ended with gain of 208 points on Thursday in a narrow band trading.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,787 points as against 36,579 points showing an increase of 208 points.

    Analysts at Arif Habib Limited said that the market traded in a narrow band today, although tilted towards positive, but oscillated between -80 points and +331 points during the session.

    Highlight of today’s session remained Cement Sector, which saw trading volumes of 38M (contributed by FCCL, MLCF & DCL) and contributed negatively to the points table.

    Selling pressure was observed in the Cement sector, whereby MLCF saw several touchdowns on lower circuit, but otherwise DGKC and LUCK saw considerable buying activity. E&P, Refinery, Banks and Engineering sector performed positive today.

    Sectors contributing to the performance include Banks (+48 points), E&P (+46 points), O&GMCs (+36 points), Power (+24 points), Fertilizer (+20 points) and Cement (-20 points).

    Volumes increased from 141.2 million shares to 143.8 million shares (+2 percent DoD). Average traded value also increased by 7 percent to reach US$ 31.2 million as against US$ 29.1 million.

    Stocks that contributed significantly to the volumes include TRG, FCCL, MLCF, KEL and WTL, which formed 39 percent of total volumes.

    Stocks that contributed positively include OGDC (+29 points), PSO (+24 points), HUBC (+22 points), LUCK (+22 points), and HBL (+14 points). Stocks that contributed negatively include DGKC (-13 points), FCCL (-9 points), MLCF (-9 points), HASCOL (-5 points) and CHCC (-5 points).

  • Rupee ends flat in interbank market

    Rupee ends flat in interbank market

    The Pakistani Rupee concluded Thursday’s trading session without significant changes against the US Dollar, maintaining a stable position despite initial gains.

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  • Adil Rashid appointed as CEO Wateen Telecom

    Adil Rashid appointed as CEO Wateen Telecom

    KARACHI: Wateen Telecom Board of Directors announced today that Adil Rashid has been appointed as Chief Executive Officer of the company effective April 22 and he will replace Rizwan Tiwana, who has resigned for personal reasons.

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  • forex reserves deplete by $169m to $17.228bn

    forex reserves deplete by $169m to $17.228bn

    Karachi – The foreign exchange reserves of Pakistan experienced a decline of $169 million, reaching $17.228 billion for the week ended April 5, 2019, according to the State Bank of Pakistan (SBP).

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  • FBR asks financial institutions to provide account holders details for automatic exchange of information

    FBR asks financial institutions to provide account holders details for automatic exchange of information

    KARACHI: Federal Board of Revenue (FBR) has asked financial institutions to provide details of their account holders by May 31, 2019 for the purpose of automatic exchange of information with OECD member countries.

    In a notice sent to Pakistan Stock Exchange (PSX), the FBR said that as per section 165(B) and 107(1) of Income Tax Ordinance, 2001 and other applicable domestic laws and rules related to Automatic Exchange of Information (AEOI), the Reporting Financial Institutions are required to obtain and maintain certain information about their account holders in accordance with the CRS Rules notified by FBR through SRO166(I)/2017 on March 15, 2019, which has to be reported to FBR on an annual basis on May 31 of every year.

    The FBR said that reports from RFIs are due on May 31, 2019. In this regard the FBR asked the stock exchange to direct the RFIs that report to or are under the control of the stock market to ensure timely compliance as per law and rules.

    The FBR warned that in case of failure the RFIs would be penalized under Section 182 of the Income Tax Ordinance, 2001.

  • United Brands Limited stops consumer products’ distributions of leading brands

    United Brands Limited stops consumer products’ distributions of leading brands

    KARACHI: A leading distributor of consumer goods has discontinued distribution of leading brands from its business portfolio which may cause monthly loss of Rs58 million.

    According to a notification to Pakistan Stock Exchange (PSX) on Thursday United Brands Limited, which is involved in distribution of consumer products, informed that it had discontinued following businesses from business portfolio, which would result in loss of revenue by approximately Rs58 million or Rs696 million annual loss:

    a. Mars

    b. Wrigley’s

    c. Haleeb Foods

    d. Unilever

    e. Heinz

    f. IFFCO

  • Rupee gains 4 paisas in early trade on declining import bill

    Rupee gains 4 paisas in early trade on declining import bill

    KARACHI: The Pak Rupee gained 4 paisas against dollar in early day trading on Thursday after the reports of significant fall in import bill in March 2019.

    The dollar is being traded at Rs141.34 to the dollar in interbank foreign exchange market. The foreign currency market was ended at Rs141.38 to the dollar.

    The import bill has been declined by 21 percent in March 2019 to $4.15 billion as compared with $5.25 billion in March 2017.

    The total import bill during first nine months of current fiscal year fell by 8 percent to $40.75 billion as compared with $44.28 billion in July – March 2017/2018.

  • Sales Tax Act 1990: Recovery of amount erroneously refunded

    Sales Tax Act 1990: Recovery of amount erroneously refunded

    KARACHI: The officers of Inland Revenue have been authorized for recovery of refunded amount erroneously issued to taxpayer along with penalties and default surcharge.

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  • FPCCI recommends single digit sales tax rate

    FPCCI recommends single digit sales tax rate

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has proposed reducing sales tax to single digit from existing 17 percent. In its pre-budget conference on Wednesday, the apex trade body present its set of proposals for budget 2019/2020.

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  • Car sales down 4 percent on economic slowdown, high prices

    Car sales down 4 percent on economic slowdown, high prices

    KARACHI: The sales of locally assembled cars have declined by 4 percent during first nine months (July-March) 2018/2019 owing to slowdown in economy and recent rise in car prices, analysts said on Wednesday.

    The sales of locally assembled cars fell to 185,023 units during July – March 2018/2019 as compared with 192,734 units in the corresponding period of the last fiscal year, according to Pakistan Auto Manufacturers Association (PAMA).

    Analysts at Topline Securities attributed the decline in car sales to slowdown in economy and rise in recent car prices.

    Indus Motors (INDU) reported 11 percent YoY decline during March 2019 mainly on account of lower sales of Fortuner & Hilux, which were down 63 percent and 65 percent, respectively, YoY.

    The analysts said that this was due to 10 percent Federal Excise Duty (FED) imposed on above 1700 CC engine cars.

    Corolla sales posted growth of 2 percent YoY.

    Pak Suzuki (PSMC) reported 23 percent YoY growth in sales led by growth in Wagon R with growth of 63 percent YoY.

    Other major contributors in overall growth were Cultus, Bolan and Ravi, up by 17 percent, 38 percent and 36 percent YoY, respectively.

    Swift was the only PSMC variant to record decline, down 16 percent YoY.

    Honda cars (HCAR) sales fell 29 percent YoY in Mar 2019, steepest YoY decline during a month since May 2012. In addition to economic factors, decline in City and Civic variants is attributed to anticipation of a launch of new variant (Civic 1.5 Turbo new variant launched in April-19).

    The analysts said that overall demand of automobiles is expected to remain subdued due to recent hike in policy rate (+475bps since Jan 2018 to 10.75 percent), resulting in higher borrowing cost for auto financing.

    Furthermore, incremental cost as a result of rupee devaluation & increasing inflation has led to higher car prices, impacting purchasing power of car buyers.

    To note, the government is mulling over removal of 10 percent FED on engines with 1700CC above, as per news reports.

    However no official announcement has yet been made, adding to the uncertainty to the car sales with engine size of over 1700CC.