The National Clearing Company of Pakistan Limited (NCCPL) has declared that Capital Gain Tax (CGT) for the month of April 2020 will be collected on May 29, 2020.
(more…)Category: Stock & Commodity
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Equity market gains 354 points on improved trading on energy sector
KARACHI: The equity market gained 354 points on Tuesday as trading activities seen in energy sectors after improved prices in international crude oil.
The benchmark KSE-100 index closed at 34,185 points as against 33,804 points showing an increase of 354 points.
Analysts at Arif Habib Limited said that the market opened on a positive note today and went up by 546 points during the session. Increasing international crude prices helped E&P, OMCs and Refinery sectors contribute to the growth in index. Besides, Pharmaceuticals posted price gains on the back of prospects of working towards cure for Corona virus, whereby FEROZ, SEARL, ICI made significant strides during past several sessions.
Profit booking, however, was observed in FEROZ. Banking sector also showed some signs of recovery, however, price gains remained muted. Cement sector saw continued attrition during past sessions and today saw rather aggressiveness, post realization of interest rate cut.
O&GMCs posted highest trading volume among sectors with 40 million shares, followed by Technology (35.3 million) and Cement (32.8 million). Among scrips, HASCOL led the volumes with 31.6 million shares, followed by TRG (16 million) and MLCF (12.7 million).
Sectors contributing to the performance include E&P (+106 points), Pharma (+52 points), O&GMCs (+40 points), Misc (39 points), Banks (+24 points) and Cement (-15 points).
Volumes declined from 261.9 million shares to 247.8 million shares (-6 percent DoD). Average traded value, on the contrary, increased significantly from US$ 45.4 million to US$ 65.2 million (+44 percent DoD).
Stocks that contributed significantly to the volumes include HASCOL, TRG, MLCF, PAEL and KEL, which formed 33 percent of total volumes.
Stocks that contributed positively to the index include OGDC (+60 points), PPL (+37 points), PSEL (+31 points), SNGP (+26 points) and DAWH (+22 points). Stocks that contributed negatively include ENGRO (-13 points), MEBL (-9 points), PIOC (-9 points), CHCC (-8 points), and AICL (-7 points).
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SECP issues guidelines for license renewal amid COVID-19
ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has issued guidelines for license renewal in order to facilitate companies considering difficulties due to COVID-19.
The SECP issued Circular No. 19/2020 for extension in time for renewal of licenses due to COVID-19.
The regulator said that the COVID-19 (coronavirus) had affected many businesses around the globe and had been declared as pandemic.
In order to facilitate the shareholders/directors/employees during this ongoing pandemic, the SECP issued the guidelines regarding renewal of their licenses, issued in pursuance of section 42 of the Company Law.
The SECP said that the companies whose license were due for renewal before the month of February 2020, and had not applied for renewal, their license shall be revoked in accordance with the provision of Section 42(5) of the Companies Act, 2017.
The SECP further said that the companies whose license had been expired in the months of February, March, April and May 2020 but had not applied for its renewal would continue to carry on their business and their license would not be revoked till June 30, 2020. However, upon receipt of their applications, license shall be renewed from the date of expiry of their existing license.
The regulator further said that the companies, which had applied for renewal of their license either before or after February 01, 2020 and certain deficiencies were also communicated to them, were required to respond to the quarries latest by May 30, 2020, failing which their license would be revoked.
“Companies, which do not find any difficulty in complying with the requirements of the renewal of their license, may apply in a routine manner,” the SECP said.
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Share market falls by 203 points on profit taking
KARACHI: The share market fell by 203 points on Monday as investors preferred profit booking, analysts said.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,805 points as against 34,008 points showing a decline of 203 points (-0.6 percent DoD).
Analysts at Arif Habib Limited said that post rate cut last week, market posted some gains today, showing an upside of 385 points earlier in the session, however, profit booking caused Index to slide posting a decline of 238 points during the session and closing -203 points.
Banking sector primarily caused the plunge resulting in across the board price loss.
Cement sector also couldn’t escape the selling pressure, although rate cut meant to benefit the leveraged cement players.
Technology sector topped the chart with 56.2 million shares, followed by Cement (35.2 million) and Investment Banks (31.4 million). Among Scrips, TRG realized 22.5 million shares, followed by KEL (17.5 million) and WTL (17.3 million).
Sectors contributing to the performance include E&P (+54 points), Food (+19 points), Banks (-117 points), Cement (-58 points), Misc. (-42 points), Fertilizer (-39 points) and O&GMCs (-14 points).
Volumes increased from 213.3 million shares to 262.0 million shares (+23 percent DoD). Average traded value also increased by 17 percent to reach US$ 45.4 million as against US$ 38.8 million.
Stocks that contributed significantly to the volumes include TRG, KEL, WTL, MLCF and FCSC, which formed 34 percent of total volumes.
Stocks that contributed positively to the index include OGDC (+28 points), NESTLE (+25 points), TRG (+18 points), PPL (+18 points) and ICI (+13 points). Stocks that contributed negatively include PSEL (-34 points), MCB (-33 points), BAHL (-25 points), LUCK (-23 points), and FFC (-23 points).
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Weekly Review: market likely gain as lockdown eases
KARACHI: The share market to remain green due to easing of lockdown in the country which will revive economic activity.
Analysts at Arif Habib Limited said that moreover, SBP announced 100 basis points reduction in policy rate to cushion economic fallout amid lower inflationary readings on account of slowdown in demand and decline in fuel prices which may fuel bullish sentiments.
That said, rising cases of Coronavirus in Pakistan may again lead to a strict lockdown which would once again put pressure on the index.
Investors may opt for profit taking in upcoming week before Eid Holidays.
The benchmark KSE-100 of Pakistan Stock Exchange (PSX) is currently trading at a PER of 7.1x (2020) compared to Asia Pac regional average of 10.2x while offering a dividend yield of 8.2 percent versus 3.1 percent offered by the region.
This past week, the benchmark equity bourse (KSE-100) sustained the 33,000 level and exhibited gains on 5 out of 5 trading sessions (this has happened after 26 weeks).
Reasons for the positive sentiment include: i) Softening of lockdown announced by federal and provincial governments helped to increase domestic business activity including opening of industries, ii) Pakistan weight in MSCI EM index remained unchanged, iii) Government announced construction of Diamer-Bhasha Dam that will generate demand for Cement and Steel, and iv) Expectation of further rate cut improved activity in highly levered stocks.
However, Commercial Banks felt the heat on account of expectation of further rate cut which may stress profitability of the banking sector.
As a result, the KSE-100 index closed at 34,008 points, up by 741 points or 2.2 percent WoW.
Contribution to the upside was led by i) Oil and Gas Exploration Companies (192 points), ii) Cements (177 points), iii) Fertilizer (148 points), iv) Food and Personal Care Products (61 points), and v) Technology and Communication (57 points). Scrip wise major gainers were FFC (74 points), MARI (73 points), LUCK (66 points), NESTLE (59 points), and OGDC (56 points). Whereas, scrip wise major losers were BAHL (40 points), SNGP (35 points) ABL (20 points), INDU (17 points) and PAKT (14 points).
Foreigners offloaded stocks worth of USD 10.91 million compared to a net sell of USD 17.82 million last week.
Major selling was witnessed in Commercial Banks (USD 2.89 million) and Power Generation and Distribution (USD 2.40 million).
On the local front, buying was reported by Individuals (USD 5.56 million) followed by Mutual Funds (USD 4.97 million). That said, average daily volumes for the outgoing week were up by 15 percent to 219 million shares whereas value traded decreased by 13 percent to USD 40.3 million.
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Share market gains 203 points as energy scrips make recovery
KARACHI: The share market gained 203 points on Friday owing to recovery in energy scrips after gain in oil prices in international markets.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,008 points as against 33,805 points showing an increase of 203 points.
Analysts at Arif Habib Limited said that the market opened on a positive note today with +89 points and went up by 236 points during the session, closing +203 points at 34,000 level.
Bounce in international crude prices helped oil and gas stocks to stage some recovery from recent past sessions.
OGDC and PPL particularly performed well. In the anticipation of rate cut by the Central bank (to be decided today), Cement sector also performed though posted limited gains.
FEROZ continued ascent on the back of its arrangement with Gilead for manufacturing of Remdesivir, and made consecutive cap for past several sessions.
Banking sector stocks remained subdued on the prospect of rate cut, however, active buying interest was observed in both BOP and HBL, which have since the beginning of the week performed well.
Cement sector recorded trading volume of 29.7 million shares, followed by Technology (26.3 million) and O&GMCs (18.8 million). Among scrips, HASCOL led the volumes with 14.8 million shares, followed by KEL (12.2 million) and MLCF (9.9 million).
Sectors contributing to the performance include E&P (+109 points), Power (+58 points), Cement (+50 points), Food (+31 points), Fertilizer (+20 points) and Banks (-62 points).
Volumes declined from 240.2 million shares from 213.3 million shares (-11 percent DoD). Average traded value inched up by 1 percent to reach US$ 38.8 million as against US$ 38.5 million.
Stocks that contributed significantly to the volumes include HASCOL, KEL, MLCF, FFL and FCSC, which formed 25 percent of total volumes.
Stocks that contributed positively to the index include HUBC (+53 points), NESTLE (+34 points), MARI (+33 points), POL (+29 points) and OGDC (+25 points). Stocks that contributed negatively include BAHL (-22 points), MCB (-21 points), UBL (-19 points), DAWH (-15 points), and PAKT (-12 points).
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SECP facilitates companies in IAS 39 requirements
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SEC) has allowed relief registered companies that are applying IAS 39/principles of IAS 39 (for Available for Sale equity instruments).
The SECP issued S.R.O. 414 (I)/2020 and allowed following relief from the requirements contained in IAS 39 in relation to their Available for Sale (AFS) Equity Investments as follows:
(a) The company/entity can opt to show impairment loss (if any, due to significant or prolonged decline in fair value of AFS equity investment portfolio), as at March 31, 2020, in the statement of changes in equity.
(b) If the above short-term relief is opted, the company/entity shall disclose in the notes to the financial statements:
(i) amount of impairment loss included in the statement of changes in equity under (a) above;
(ii) amount of profit or loss after tax, arrived at by accounting for the impact of impairment loss in accordance with IAS 39; and
(iii) Earnings per share based on the (ii) above.
(c) The dividend income and actual realized gain/loss arising from the de-recognition of AFS equity instruments shall be recognised in the profit and loss account in accordance with the requirements of IAS 39.
(d) The amount of loss taken to equity as per (a) above, shall be treated as a charge to profit and loss account for the purpose of distribution as dividend, where applicable.
(e) The amount taken to equity as per (a) above for an AFS equity instrument, adjusted with the fair value change of this AFS equity instrument during the period from April 01, 2020 to June 30, 2020, shall be considered for impairment in accordance with the requirements of IAS 39.
(f) The impairment loss (if any), as of June 30, 2020, as per (e) above shall be taken to the profit and loss account for the year/period ending June 30, 2020.
The SECP said that companies/entities willing to follow the full requirements of IAS-39 as applicable are encouraged to do so.
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Share market gains 112 points in mixed trading
KARACHI: The share market gained 112 points on Thursday in mixed trading during the day.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,805 points against 33,693 points showing an increase of 112 points.
Analysts at Arif Habib Limited said that the market made a repeat of yesterday, opening 204 points up, increasing by 304 points in total during the session and closing 112 points.
Fertilizer sector played an important role in posting gains on the index, primarily due to announcement of package for the farmers towards purchase of DAP and Tractors.
Resultantly, FFBL hit upper circuit whereas other Fertilizer sector scrips also went up before facing selling pressure.
Cement, Steel, Banks and E&P sector largely traded range bound. Upward movement in international crude prices even couldn’t excite investors.
Technology sector topped the index with 40.7 million shares, followed by Cement (29.1 million) and Chemical (21.3 million).
Among scrips, TRG realized 20.9 million shares, followed by UNITY (18.6 million) and AGL (14.8 million).
Sectors contributing to the performance include Fertilizer (+80 points), Inv Banks (+31 points), Food (+27 points), Technology (+24 points), E&P (+23 points), Banks (-59 points), Power (-32 points) and Cement (-28 points).
Volumes increased from 219.2 million shares to 240.2 million shares (+10 percent DoD). However, average traded value declined by 25 percent to reach US$ 38.5 million as against US$ 51 million.
Stocks that contributed significantly to the volumes include TRG, UNITY, AGL, FFL and MLCF, which formed 32 percent of total volumes.
Stocks that contributed positively to the index include FFC (+48 points), NESTLE (+26 points), DAWH (+26 points), MTL (+25 points) and OGDC (+18 points). Stocks that contributed negatively include HUBC (-31 points), HBL (-22 points), ABL (-20 points), BAHL (-10 points), and LUCK (-10 points).
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Equity market increases by 90 points amid selling pressure
KARACHI: The equity market increased by 90 points on Wednesday amid selling pressure witnessed during the day.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,693 points as against 33,603 points showing an increase of 90 points (+0.3 percent DoD).
Analysts at Arif Habib Limited said that market opened on a positive note today with +125 points and maintained the momentum from yesterday, gaining 200 points before facing resistance.
MSCI rebalancing did not result in HBL’s ouster, which is the main reason for selling pressure in HBL in the past sessions.
HBL posted price gains but still stayed within limits. Cement sector bore selling pressure, as did Power and E&P sectors.
Among pharma stocks, FEROZ posted a consistent upper circuit, whereas buying activity was also observed in SEARL.
Among O&GMCs, SNGP faced selling pressure due to exclusion from MSCI EM Index.
Cement sector led the volumes with 69.1 million shares, followed by Technology (32.1 million) and O&GMCs (16.1 million).
Among scrips, MLCF had 23.2 million shares, followed by DCL (16.2 million) and TRG (15.9 million).
Sectors contributing to the performance include Banks (+72 points), E&P (+41 points), Pharma (+17 points), Technology (+13 points), Power (-19 points) and Inv Banks (-16 points).
Volumes declined from 224.5 million shares to 219.2 million shares (-2 percent DoD). Average traded value, on the contrary, increased by 11 percent to reach US$ 51.0 million as against US$ 45.9 million.
Stocks that contributed significantly to the volumes include MLCF, TRG, DCL, FCCL and HASCOL, which formed 34 percent of total volumes.
Stocks that contributed positively to the index include HBL (+37 points), PPL (+29 points), MARI (+18 points), TRG (+18 points) and MCB (+15 points). Stocks that contributed negatively include SNGP (-27 points), HUBC (-22 points), ENGRO (-19 points), DAWH (-16 points), and EFUG (-11 points).
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Equity market gains 319 points on policy rate cut hope
KARACHI: The equity market recorded increase of 319 points on Tuesday on expectation of cut in policy rate to be announced this week.
The Index closed at 33,603 points as against 33,284 points showing an increase of 319 points.
Analysts at Arif Habib Limited said that the market went positive on the prospect of rate cut for which the State Bank of Pakistan (SBP) will be taking decision by end of week, besides the government’s stance on construction of Dams that is likely to generate demand for Cement and Steel.
Resultantly, Cement and Steel sectors ruled the index, mostly trading near upper circuits and generating high trading volumes. Banking and Oil & Gas sector stocks couldn’t generate much interest amongst investors.
Cement sector topped the index with 75.8 million shares, followed by Technology (28.6 million) and Vanaspati (23.1 million). Among scrips, MLCF realized trading volumes of 28.4 million shares, followed by UNITY (23.1 million) and FCCL (19.1 million).
Sectors contributing to the performance include Cement (+150 points), Banks (+67 points), Fertilizer (+62 points), E&P (+28 points), Power (+24 points) and O&GMCs (-16 points).
Volumes increased further from 198.2 million shares to 224.5 million shares (+13 percent DoD). Average traded value also increased by 68 percent to reach US$ 45.9 million as against US$ 27.4 million.
Stocks that contributed significantly to the volumes include MLCF, UNITY, FCCL, WTL and HASCOL, which formed 42 percent of total volumes.
Stocks that contributed positively to the index include LUCK (+50 points), ENGRO (+31 points), HBL (+29 points), MCB (+28 points) and DGKC (+26 points).
Stocks that contributed negatively include SNGP (-20 points), BAHL (-9 points), PMPK (-8 points), DAWH (-7 points), and AICL (-6 points).