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Category: Stock & Commodity

  • NCCPL excludes Hascol Petroleum from list of eligible securities

    NCCPL excludes Hascol Petroleum from list of eligible securities

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Monday excluded M/s. Hascol Petroleum from the list of eligible securities after the stock exchange placed the oil company into defaulter segment.

    The NCCPL said that this is with reference to Pakistan Stock Exchange Notice No. PSX/N-781 dated: June 25, 2021, regarding placement of M/s. Hascol Petroleum Limited (“HASCOL”) in the Defaulter’s segment with effective from Monday, June 28, 2021.

    This event leads to action under Clauses 7A.3.5 and 7B.3.1.4 of NCCPL Regulations, 2015 that has been reproduced below for ready reference;

    “Where a Security that has been quoted on the defaulter’s segment of the Exchange and notified to the Company, such Security shall not be eligible for trading in the SLB Market from the date it has been placed on the defaulter segment. However, all open SLB Contracts shall be released on Accelerated Maturity Date and/or Maturity Date as the case may be.”

    “In case where such Security is reinstated during the review period, trading in SLB Market shall not be allowed during that review period.” (Regulations 7A.3.5)

    “Where a Security that have been quoted on the Defaulter segment of the Exchange and notified to the Company, such Security shall not be made available on MF Market from the date it has been placed on the defaulter segment. However, all MF (R) Transactions shall be released as per the terms and conditions defined in the Margin Financing Agreement between MF Participants.”

    “In case where such Security is reinstated during the review period, trading in MF Market shall not be allowed during that review period.” (Regulations 7B.3.1.4)

    Where a MT Eligible Security that have been quoted on the defaulter segment of the Exchange and notified to the Company, such Security shall not be eligible for trading in the MT Market from the date it has been placed on the Defaulter segment. However, all open MT Contracts shall be released on Accelerated Maturity Date and/or Maturity Date as the case may be.

    In case where such Security is reinstated during the review period, trading in MT Market shall not be allowed during that review period. (Regulations 7C.3.2 (15)

    Accordingly, in pursuance of provisions stipulated in the above referred clauses of NCCPL Regulations, 2015, M/s. Hascol Petroleum Limited shall be excluded from the list of SLB Eligible Securities, MF Eligible Securities and MTS eligible Securities with effect from Monday, June 28, 2021.

  • SEC Pakistan imposes monetary penalty of Rs4bn on B4U Group for raising illegal deposits

    SEC Pakistan imposes monetary penalty of Rs4bn on B4U Group for raising illegal deposits

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has imposed a heavy penalty of Rs4 billion on B4U group for raising deposits illegally and operating pyramid schemes.

    In a tweet message on Sunday, the SECP said that it had concluded adjudication proceedings against B4U Group and its sponsors for raising illegal deposits from the public and operating pyramid schemes, in violation of the Companies Act, 2017.

    The B4U Group comprises of 18 companies incorporated under the Act, as well as five unincorporated business setups. All the 18 companies were registered during the last two years. The main sponsor of B4U Group is Saif-ur-Rehman, along with his immediate family member.

    The SEC Pakistan, after completing the due process of law, has disqualified the sponsors of B4U Group becoming a director of any company for a period of five years and has also imposed a penalty of Rs100 million on each of its sponsors. Further, the sponsors shall not be allowed to incorporate any new company under the Act.

    “In addition the SECP has granted sanction for winding up of all 18 companies of B4U Group and imposed a penalty of Rs200 million on each company. Aggregate penalties amounting to Rs4 billion have been imposed on B4U Group.”

  • Weekly Review: stock market likely witness mixed trend

    Weekly Review: stock market likely witness mixed trend

    KARACHI: The stock market likely to witness mixed trading activities during next week owing to grey list status of Pakistan and budget incentives.

    Analysts at Arif Habib Limited said that the market to depict a mixed to positive trend in the upcoming week attributable to: FATF’s announcement to keep Pakistan on Grey List; and sectors that got major relief in the budget will remain in the limelight.

    On the other hand, E&P scrips are expected to continue performing well due to higher international oil prices and government shelving divestment plan of OGDC and PPL and also deferring divestment of government shares in MARI.

    However, a Current Account Deficit of USD 632 million for May’21 and uptick in CPI in the upcoming months, may dampen investors sentiments.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.8x (2021) compared to Asia Pac regional average of 16.5x while offering a dividend yield of ~6.9 per cent versus ~2.3 per cent offered by the region.

    This week trading commenced on a negative note with the index shedding 226 points on Monday amid economic uncertainty given surge in international oil price along with deprecation of the rupee might which is expected to push up inflationary readings in upcoming months.

    Pessimism at the bourse was further fueled by i) Unavailability of gas to non-export related industries, ii) Petrol shortage at many fuel stations in Pakistan as oil tankers go on a countrywide strike which might affect business of exporters, iii) proposal for reclassification of Pakistan from MSCI Emerging Market to Frontier Market, and iv) Uncertainty over the FATF plenary outcome led to profit taking by investors. The KSE-100 index closed at 47,603 points, down by 635 points or 1.32 per cent WoW.

    Contribution to the downside was led by i) Cements (212 points), ii) Commercial Banks (178 points), iii) Oil and Gas Exploration Companies (58 points), iv) Pharmaceuticals (53 points), and v) Oil and Gas Marketing Companies (51 points). Scrip-wise major losers were LUCK (118 points), TRG (62 points), MCB (60 points), PSO (45 points), and HBL (44 points). Whereas, scrip-wise major gainers were SYS (67 points), FCEPL (43 points), HUBC (38 points), ANL (34 points) and MTL (21 points).

    Foreigners offloaded stocks worth of USD 7.88 million compared to a net sell of USD 6.76 million last week. Major selling was witnessed in All other sectors (USD 7.42 million) and Commercial Banks (USD 1.94 million). On the local front, buying was reported by Individuals (USD 13.71 million) followed by Banks (USD 12.86 million). That said, average daily volumes and traded value for the outgoing week were down by 34 per cent and 35 per cent to 694 million shares and USD 112 million, respectively.

  • Stocks end down by 359 points amid selling pressure

    Stocks end down by 359 points amid selling pressure

    KARACHI: The stock market witnessed a decline of 359 points on Friday as across the board selling pressure observed during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 47,604 points as against previous day’s close of 47,963 points, showing a decline of 359 points.

    Analysts at Arif Habib Limited said that the rollover week ended with market shedding 486 points during the session and closing the index -359 points.

    Overnight intimation from MSCI regarding possible downgrade of Pakistan from MSCI Emerging Market Index to MSCI Frontier market Index, had investors perplexed on the upgrade of stocks in the recent MSCI review particularly LUCK and TRG, which were added to the Standard and Small index respectively.

    In addition, Finance Minister’s final budget speech had positive surprise for auto stocks.

    Selling pressure was observed across the board, with concentration towards Banks, E&P and Cement sector stocks. Among scrips, WTL topped the volumes with 142 million shares, followed by BYCO (53.7 million) and PACE (44.9 million).

    Sectors contributing to the performance include Banks (-114 points), Cement (-101 points), E&P (-63 points), Pharma (-40 points) and Inv Banks (-28 points).

    Volumes increased from 638.8 million shares to 761.3 million shares (+19 per cent DoD). Average traded value also increased by 32 per cent to reach US$ 138.0 million as against US$ 103.8 million.

    Stocks that contributed significantly to the volumes include WTL, BYCO, PACE, TPL and KEL, which formed 39 per cent of total volumes.

    Stocks that contributed positively to the index include PSEL (+29 points), FCEPL (+14 points), SYS (+12 points), ANL (+7 points) and HUBC (+7 points). Stocks that contributed negatively include LUCK (-66 points), HBL (-50 points), UBL (-36 points), PPL (-20 points) and DAWH (-19 points).

  • Investors allowed carry forward capital losses on disposal of securities

    Investors allowed carry forward capital losses on disposal of securities

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday allowed investors of Pakistan Stock Exchange (PSX) to carry forward capital losses for calculation of capital gain tax.

    In this regard the FBR issued SRO 801(I)/2021 to make amendment in the Income Tax Rules, 2002.

    The FBR previously issued draft rules through SRO 639(I)/2021 dated June 01, 2021 for seeking feedback from stakeholders.

    As per the SRO a substitution in sub-rule (3) of Rule 13D of the Income Tax Rules, 2002 has been made. According to the amendment:

    (3) Capital loss arising on disposal of listed securities in tax year 2019 and onwards that has not been set off against the gain of the person from disposal of listed securities chargeable to tax during the tax year shall be carried forward to the following tax year and set off only against the gain of the person from disposal of listed securities chargeable to tax but no such loss shall be carried forward to more than three tax years immediately succeeding the tax year for which the loss was first determined.

    In Rule 13N, the substitution in sub-rule (7), as:

    (7) Capital loss arising on disposal of listed securities in tax year 2019 and onwards that has not been set off against the gain of the person from disposal of listed securities chargeable to tax during the tax year shall be carried forward to the following tax year and set off only against the gain of the person from disposal of listed securities chargeable to tax but no such loss shall be carried forward to more than three tax years immediately succeeding the tax year for which the loss was first determined.

    A new sub-rule after the sub-rule 7 has been inserted, which is:

    (7A) Capital loss arising on disposal of listed securities in tax year 2019 and onward shall be carried forward to a subsequent tax year for setting off, in the manner prescribed as follow:

    (a) The setting off of eligible capital loss carried forward from previous tax year(s) shall be made by National Clearing Company of Pakistan Limited (NCCPL) under this rule, only in respect of a taxpayer whose name appear or appeared in the Active Taxpayers List (ATL) pertaining to the tax year to which such loss pertains as witnessed by the ATL available on FBR’s website after updation for the tax year to which such loss pertains;

    (b) adjustment of carried forward capital loss(es) shall be made on monthly basis by the NCCPL from the first month of updation of ATL for the tax year and on first-in first-out (FIFO) basis;

    (c) The NCCPL may requisition date wise position of ATL in respect of particular taxpayer from Information Technology (IT) Wing of the FBR as and when required;

    (d) At the end of relevant tax year, NCCPL shall maintain tax year-wise balance of unexpired carried forward capital losses separately identifiable for computation of limitation period for each ta year; and

     (e) The manner of adjustment of capital loss carried forward from previous tax years will be in accordance with illustration given in clause (zf) of Rule 13P.

  • KSE-100 index gains 62 points in narrow range trading

    KSE-100 index gains 62 points in narrow range trading

    KARACHI: The Pakistan Stock Exchange (PSX) witnessed a modest upswing on Thursday, with the benchmark KSE-100 index gaining 62 points in a day marked by narrow range trading.

    (more…)
  • Stocks end down by 86 points on selling pressure

    Stocks end down by 86 points on selling pressure

    KARACHI: The Pakistan stocks experienced a modest decline on Wednesday, closing down by 86 points amid a day characterized by range-bound trading activity.

    (more…)
  • Advance tax on stock exchange transactions abolished

    Advance tax on stock exchange transactions abolished

    KARACHI: The government through budget 2021/2022 has abolished advance tax on stock exchange transactions and in this regard required amendment has been proposed through Finance Bill, 2021.

    Tax experts at KPMG Taseer Hadi & Co. in its commentary on budget 2021/2022 said that the stock exchanges registered in Pakistan were required to collect advance tax from their members on purchases and sales of shares in lieu of tax on commission earned by them.

    The Finance Supplementary (Second Amendment) Act, 2019 abolished the collection of this advance tax effective 01 March 2019.

    Resultantly, applicability of section 233 of the Income Tax Ordinance, 2001 i.e. withholding of tax on commission income was triggered.

    However, there is a point of view that taxation of income earned by members of stock exchange registered in Pakistan still covered under this section.

    In view of above, the Bill proposes to withdraw section 233A of the Income Tax Ordinance, 2001, hence, after such amendment, the taxability of income earned by members of stock exchanges now compulsorily fall under section 233 of the Ordinance.

    The bill also proposed to abolish collection of tax by National Clearing Company of Pakistan Limited (NCCPL).

    NCCPL collects advance tax from the members of Stock Exchanges registered in Pakistan on margin financiers, trading financiers and lenders in respect of margin financing in share business. The Bill proposes to withdraw such collection of tax.

  • Stocks end flat in range bound trading

    Stocks end flat in range bound trading

    KARACHI: The stock market ended flat on Tuesday in a range bound trading activity. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 47,987 points as against previous day’s closing of 48,013 points, showing a decline of 25 points.

    Analysts at Arif Habib Limited said that the market remained depressed trading in a narrow range between -81 points and +142 points, closing the session -25 points.

    Lack of direction in the market and docile reaction to price triggers (particularly Crude Oil) has led the market into obscurity. Selling pressure remained evident in Cement, E&P, O&GMCs, Steel, Technology and Power sectors.

    Textile sector did see some positive activity with NCL, NML, GATM and ILP showing better price performance. Among scrips, SILK realized trading volume of 75.1 million shares, followed by WTL (48.2 million) and KEL (37.4 million).

    Sectors contributing to the performance include Textile (+68 points), Technology (+18 points), E&P (+16 points), Food (+12 points) and Miscellaneous (-32 points).

    Volumes declined from 839.2 million shares to 610.7 million shares (-27 percent DoD). Average traded value also declined by 2 percent to reach US$ 98.1 million as against US$ 100.5 million.

    Stocks that contributed significantly to the volumes include SILK, WTL, KEL, ANL and TPL, which formed 37 percent of total volumes.

    Stocks that contributed positively to the index include SYS (+30 points), KTML (+21 points), MARI (+21 points), ANL (+20 points) and GATM (+13 points). Stocks that contributed negatively include PSEL (-34 points), UNITY (-12 points), DAWH (-10 points), NBP (-10 points) and OGDC (-9 points).

  • Stocks shed 226 points on concerns over inflationary pressure

    Stocks shed 226 points on concerns over inflationary pressure

    KARACHI: The stock market fell by 226 points on Monday owing to concerns of inflationary pressure and rise rupee/dollar parity.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 48,013 points as against last Friday’s closing of 48,239 points, showing a decline of 226 points.

    Analysts at Arif Habib Limited said that the market traded in a narrow range between +132 points and -275 points, closing the session -226 points.

    Uncertainty prevailed during the session due to concerns over increase in oil prices giving rise to inflation as well as the increase in Rupee : Dollar parity which caused the investors to take a cautious approach.

    Despite increase in cement price / bag in the outgoing week, Cement and Steel sector stocks were down. Though oil prices have maintained stable ground, E&P sector remained under selling pressure. Among scrips, SILK topped the volumes with 235.1 million shares, followed by HUMNL (60.3 million) and WTL (58.4 million).

    Sectors contributing to the performance include Cement (-64 points), Banks (-3 points), Chemical (-25 points), Fertilizer -24 points), O&GMCs (-20 points).

    Volumes increased from 750.5 million shares to 839.2 million shares (+12 percent DoD). Average traded value declined by 23 percent to reach US$ 100.8 million as against US$ 131.2 million.

    Stocks that contributed significantly to the volumes include SILK, HUMNL, WTL, PIBTL and FFL, which formed 53 percent of total volumes.

    Stocks that contributed positively to the index include SYS (+19 points), FCEPL (+12 points), MEBL (+6 points), SNGP (+6 points) and HUBC (+6 points). Stocks that contributed negatively include LUCK (-33 points), PSO (-22 points), MCB (-20 points), COLG (-15 points) and ENGRO (-14 points).