The stock market witnessed a significant surge on Wednesday, with the benchmark KSE-100 index gaining 593 points, closing at 45,450 points compared to the previous day’s close of 44,857 points.
(more…)Category: Stock & Commodity
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Tax credit for enlistment in stock exchange may be withdrawn
ISLAMABAD: The government likely to withdraw tax credit available to companies for enlistment in stock exchange.
The withdrawal of tax credit is part of proposal to rationalize tax exemption regime in the country. The law to withdraw tax exemption and incentives may be introduced soon.
The tax credit for enlistment is available under Section 65C of the Income Tax Ordinance, 2001. The tax credit is available for three years. The first year tax credit for enlistment in stock exchange is 20 percent of the tax payable for the year in which the company is enlistment. Meanwhile tax credit for the following two years is 10 percent of the tax payable.
The government is considering omitting this tax credit. The Federal Board of Revenue (FBR) granted an amount of Rs357 million as tax credit during fiscal year 2019/2020 to the companies listed with stock exchange availing this incentive.
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SECP advises verification of legitimate entities for investment
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SEC) on Tuesday advised the general public to verify legitimacy of entities before investing their hard-earned money and savings.
The regulator in a statement said that in order to promote protection of investors and the public interest, it regularly issues warnings and alerts, guiding the general public to refrain from investing in fraudulent investment schemes that promise hefty profits and unrealistic returns.
As clearly covered in Section 84 of the Companies Act, 2017, inviting and accepting deposits from the public is a prohibited activity, and can only be offered by specialized companies duly authorized by the SECP or SBP.
In view of various complaints and queries received by the SECP concerning an entity “All Pakistan Projects”, it has emerged that the entity is offering lucrative investment packages through its website (https://allpakistanprojects.com/).
The general public is being informed that “All Pakistan Projects” is not registered with the SECP. However, it has been noted that few individuals, whose names are appearing on the website of the entity, are directors/members in the following registered companies.
APP Projects and Real Estate (Private) Limited,
AITS Traders (SMC-Private) Limited,
APP Restaurants & Cafe (Private) Limited,
APP Riders (Private) Limited;
APP Shopping Mall (Private) Limited.
As previously clarified, mere registration of a company with the SECP does not necessary mean that these companies can invite or accept deposits from the public.
In view of above, the general public is advised in their own interest, to refrain from investing their hard-earned savings in unauthorized schemes and verify the legitimacy of any investment scheme before investing. List of other entities/companies involved in similar unauthorized schemes is available on SECP’s website at the following link: https://www.secp.gov.pk/document/list-of-companies-indulged-in-unauthorized-activities/?wpdmdl=41058&refresh=5ff2b4f5a82801609741557
Complaints or evidences against companies involved in unauthorized activities and illegal deposit taking can be sent at email ID [email protected]
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Share markets gains 91 points amid narrow range trading
KARACHI: The share market gained 91 points on Tuesday amid trading in narrow range during the day.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 44,857 points as against previous day’s closing of 44,767 points, showing an increase of 91 points.
Analysts at Arif Habib Limited said that the market traded in a narrow range after posting an increase of around 2500 points from 42,700 level in the past 2 sessions.
Leveraged positions continued causing jitters every now and then, which kept activity in tech stocks as well as food sector a bit volatile.
Cement sector stocks went up earlier in the session, however, selling pressure brought the levels down by the end of session. Besides Cement, O&GMCs, Steel and E&P sectors bore selling pressure.
Among scrips, UNITY led the table with 37.2 million shares, followed by TELE (35.6 million) and TRG (28.5 million).
Sectors contributing to the performance include Tech (+124 points), Banks (+60 points), Fertilizer (+42 points), Textile (+23 points), Cement (-54 points), O&GMCs (-28 points), Power (-28 points), and E&P (-27 points).
Volumes declined from 455.5 million shares to 408.3 million shares (-10 percent DoD). Average traded value also declined by 9 percent to reach US$ 127.5 million as against US$ 140.1 million.
Stocks that contributed significantly to the volumes include UNITY, TELE, TRG, GGL and PRL, which formed 34 percent of total volumes.
Stocks that contributed positively to the index include TRG (+104 points), HBL (+28 points), EFERT (+21 points), MEBL (+19 points) and SYS (+15 points). Stocks that contributed negatively include HUBC (-37 points), PSO (-17 points), DGKC (-14 points), MLCF (-12 points) and OGDC (-12 points).
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Share market gains 979 points on buying activity
KARACHI: The share market gained 979 points on Monday owing to positive sentiments prevailed on stable political front.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 44,767 points as against last Friday’s closing 43,788 points showing an increase of 979 points.
Analysts at Arif Habib Limited said that the market opened on a positive note today and added a total of 1051 points, similar to the performance witnessed on Friday.
Leveraged positions have come off lately, whereby leverage in MTS, MFS and Futures stood Rs. 45 billion on March 8th, and by the end of the week declined to Rs. 35 billion.
The Govt’s win of Senate chairmanship also helped investors make view on index. Buying was witnessed across the board, with Cement and Steel sectors contributing the most to the Index.
Among scrips, TRG led the volumes with 24.8 million shares, followed by UNITY (23.6 million) and FCCL (21.1 million).
Sectors contributing to the performance include Cement (+170 points), Technology (+152 points), O&GMCs (+100 points), Banks (+92 points) and Power (+79 points).
Volumes increased from 442.5 million shares to 455.6 million shares (+3 percent DoD). Average traded value also increased by 2 percent to reach US$ 139.9 million as against US$ 137.5 million.
Stocks that contributed significantly to the volumes include TRG, UNITY, FCCL, BYCO and KEL, which formed 24 percent of total volumes.
Stocks that contributed positively to the index include TRG (+97 points), PSO (+71 points), LUCK (+58 points), SYS (+54 points) and HUBC (+47 points). Stocks that contributed negatively include ENGRO (-12 points), MCB (-5 points), PKGS (-4 points), MUREB (-4 points) and HGFA (-4 points).
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Weekly Review: bourse to recover on ease in political uncertainty
KARACHI: The stock market is likely to regain due to boost in investor confidence after a major political sigh of relief for the ruling government.
Analysts at Arif Habib Limited said that with the government’s candidate successfully retaining his position as Chairman Senate, we view this as a major political sigh of relief for the ruling government.
“We expect this to stimulate renewed confidence and stability in the political climate, which should help recover sentiment in the local bourse,” they said.
We do highlight that rising COVID cases, and rising oil prices are factors that could keep market performance in check.
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 17.4x and while offering DY of ~7.1 percent versus ~4.5 percent offered by the region.
Despite PM Imran Khan successfully winning a vote of confidence in the National Assembly, the domestic bourse witnessed a severe hammering throughout the week against expectations.
Concerns persisted with regards to uncertainty over the senate chairman election.
The opposition’s plans regarding “Long March” towards the end of March contributed further to the prevailing political noise.
Furthermore, Election Commission of Pakistan rejected a plea of the Government to stop the issuance of the notification for the opposition candidate’s victory in the senate elections.
Once again this was seen by the investors as a source of further instability on the political front. Besides politics, concerns over rising inflation (low-base effect), creeping up oil prices, news regarding possible withdrawal of corporate tax exemptions and resurgence in COVID-19 cases, further dented the sentiment.
Meanwhile, on the last working day, investors’ expectation of the Government candidate retaining his position as Chairman Senate helped to revive sentiments.
The market settled at 43,788 points, shedding 2,049 points (down by 4.5 percent) WoW.
This week was the worst week in terms of points as well as percentage over the last almost one year (week ending March 27, 2020 saw a decline of 2,558 points/8.34 percent WoW).
Sector-wise negative contributions came from
i) Technology & Communication (353 points),
ii) Cement (304 points),
iii) Fertilizer (224 points),
iv) Oil & Gas Exploration (169 points) and
v) Pharmaceuticals (143 points).
Whereas sectors that contributed positively include i) Insurance (22 points) and ii) Tobacco (2 points).
Scrip-wise negative contributors were TRG (278 points), LUCK (135 points), ENGRO (107 points), PPL (68 points) and SYS (67 points) while positive contributors included AICL (25 points), BAHL (21 points) and MCB (11 points).
Foreign buying this week clocking-in at USD 3.6 million compared to a net sell of USD 10.7 million last week. Buying was witnessed in Commercial Banks (USD 2.3 million) and Food and Personal Care Products (USD 0.4 million). On the domestic front, major selling was reported by Mutual Funds (USD 9.1 million) and Insurance Companies (USD 5.6 million).
Average volumes arrived at 433 million shares (up by 12 percent WoW) while average value traded settled at USD 138 million (up by 7 percent WoW).
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Share market rebounds with gain over 1,000 points
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 43,788 points from previous day’s closing of 42,780 points, showing an increase of 1,008 points.
Analysts at Arif Habib Limited said that post clearance of leveraged positions of Individual investors, market bounced back today with a jump of 1206 points during the session and a net increase of 1008 points at the end of session.
Cement and Steel sectors contributed significantly to the surge in index. Technology stocks, which were the subject of leveraged positions, bounced back from session’s low, however, by the end of session selling commenced back in tech stocks, which brought the index down from session’s high.
Besides, excitement of senate elections also had some bearing on the stock market, where a win on Government’s part was considered to be a source of confidence for the Investors.
Among scrips, UNITY topped the volumes with 88.2 million shares, followed by TRG (38.8 million) and JSCL (17.7 million).
Sectors contributing to the performance include Cement (+223 points), Banks (+151 points), E&P (+90 points), Power (+83 points) and O&GMCs (+70 points).
Volumes increased from 406.1 million shares to 442.4 million shares (+9 percent DoD). Average traded value also increased by 22 percent to reach US$ 137.4 million as against US$ 112.7 million.
Stocks that contributed significantly to the volumes include UNITY, TRG, JSCL, PRL and TELE, which formed 41 percent of total volumes.
Stocks that contributed positively to the index include LUCK (+76 points), HUBC (+61 points), HBL (+46 points), PSO (+43 points) and SYS (+43 points). Stocks that contributed negatively include ANL (-9 points), ENGRO (-6 points), TRG (-4 points), ABOT (-2 points) and SHFA (-2 points).
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Stock market ends down by 912 points as selling continues
KARACHI: The stock market witnessed a massive fall of 912 points on Thursday as selling pressure continued over negative sentiments.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 42,780 points as against previous day’s closing of 43,692 points, showing a decline of 912 points.
Analysts at Arif Habib Limited said that the market saw another thrashing of 1003 points after posting an increase of 199 points during the session.
Selling pressure kept building up by the end of session, where several stocks hit lower circuits, however, periodic buying contained the losses to -912 points by the end of session.
Cement sector saw buying activity, whereas Banks, E&P, Power, O&GMC sectors contributed most to the decline in Index.
Though FBR gave clarification on withdrawal of tax exemptions, the investors remained perturbed on anticipation of levy of additional taxes that made the leveraged investors closing their positions at market rates rather than meeting the margin requirements.
In addition, tomorrow’s senate elections also had bearing on today’s session, where investors preferred staying away from the market than bearing the brunt from any surprise as was witnessed in the previous week.
Among scrips, UNITY led the volumes with 34.8 million shares, followed by TRG (27.1 million) and HUMNL (21.4 million).
Sectors contributing to the performance include Banks (-139 points), E&P (-118 points), Technology (-98 points), Textile (-74 points) and Cement (-70 points).
Volumes increased from 363.2 million shares to 406 million shares (+12 percent DoD). Average traded value, on the contrary, declined by 16 percent to reach US$ 112.8 million as against US$ 134.6 million.
Stocks that contributed significantly to the volumes include UNITY, TRG, HUMNL, WTL and KEL, which formed 30 percent of total volumes.
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SECP’s company registration increases to 137,054
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has reported a significant increase in company registrations, bringing the total to 137,054 by the end of February 2021, according to a recent statement.
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Stock market ends down by 531 points on selling pressure
KARACHI: The stock exchange declined by 531 points on Wednesday as investors preferred selling in the wake of government decision to withdraw tax exemptions and increase in electricity tariff.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 43,692 points as against previous day’s close of 44,223 points, showing a decline of 531 points.
Analysts at Arif Habib Limited said that the market continued the down trend. Anticipation of government’s withdrawal of tax exemption in the wake of IMF program, increase in electricity tariff and deferment of increase in petroleum prices have Investors selling positions across the board with pressure points in Tech, Cement, Steel and O&GMC sectors. Redemptions from Mutual funds and Insurance companies maintained the selling pressure on stocks.
Among scrips, TRG topped the volumes with 38.1 million shares, followed by UNITY (24.8 million) and GGL (19.1 million).
Sectors contributing to the performance include Technology (-130 points), Cement (-60 points), Fertilizer (-52 points), Power (-46 points) and O&GMCs (-32 points).
Volumes declined from 492.3 million shares to 363.2 million shares (-26percent DoD). Average traded value also declined by 10percent to reach US$ 134.5 million as against US$ 149.1 million.
Stocks that contributed significantly to the volumes include TRG, UNITY, GGL, FFBL and PRL, which formed 31percent of total volumes.
Stocks that contributed positively to the index include UBL (+12 points), MEBL (+11 points), AICL (+11 points), BAHL (+10 points) and FCCL (+8 points). Stocks that contributed negatively include TRG (-76 points), SYS (-52 points), LUCK (-43 points), HUBC (-35 points) and HBL (-31 points).