KARACHI: The stock market witnessed decline of 195 points on Monday amid profit taking during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,916 points as against 34,112 points showing a decline of 195 points.
(more…)Category: Stock & Commodity
-
April gains result best performing month for equity market in past 10 years
The Karachi Stock Exchange (KSE) experienced an extraordinary surge in April 2020, recording an impressive increase of 4,880 points. This translates into a return of +16.7 percent Month-on-Month (MoM) and +21.5 percent in USD terms, marking the best-performing month since March 2009.
(more…) -
Weekly Review: Market likely to continue gaining momentum
KARACHI: The share market is likely to continue gaining momentum during the next week owing to positive reports on economic front.
(more…) -
Share market climbs up by 953 points on rate cut hopes
KARACHI: The share market made sharp gain of 953 points on Thursday owing to expected rate cut and reports of ease in lockdown.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,112 points as against 33,159 points showing an increase of 953 points.
Analysts at Arif Habib Limited said that just before the long weekend, the market went north today with a jump of 1020 points during the session, closing +953 points, courtesy of rising crude oil prices, expectation of rate cut and relaxation in lockdown.
Activity was observed across the board, with major contribution from oil and gas stocks i.e. E&P, OMCs, with OGDC, PPL and POL hitting upper circuits and realizing high volume trades at that level.
Banking sector stocks remained relatively muted, whereas Cement, Fertilizer and Steel sectors made considerable stride forward.
Cement sector topped the chart with 53.6 million shares, followed by O&GMCs (45 million) and Cable (28.1 million).
Among scrips, HASCOL ranked first with 37.6 million shares, followed by PAEL (26.9 million) and MLCF (25.8 million).
Sectors contributing to the performance include E&P (+308 points), Banks (+137 points), Power (+94 points), Fertilizer (+87 points) and O&GMCs (+84 points).
Volumes increased from 140.5 million shares to 291.5 million shares (+107 percent DoD). Average traded value also increased by 61 percent to reach US$ 76.7 million as against US$ 47.6 million.
Stocks that contributed significantly to the volumes include HASCOL, PAEL, MLCF, PPL and UNITY, which formed 42 percent of total volumes.
Stocks that contributed positively to the index include OGDC (+105 points), PPL (+93 points), HUBC (+82 points), POL (+64 points) and MCB (+50 points). Stocks that contributed negatively include PAKT (-12 points), DAWH (-11 points), PSEL (-9 points), SYS (-3 points), and PMPK (-2 points).
-
PSX proposes abolishing capital gains tax for two years
KARACHI: Pakistan Stock Exchange (PSX) has demanded eliminating Capital Gains Tax (CGT) for up to next two years in order to attract more foreign investment.
The PSX in its tax proposals for budget 2020/2021 suggested the Federal Board of Revenue (FBR) to eliminate / reduce CGT for next 24 months or at a minimum align rates of capital gains tax on disposal of securities with other regional exchanges and OECD countries of the world.
The PSX said that currently, carry forward of losses is only allowed up to a period of three years and that last year CGT collection was merely Rs1.3 billion. Moreover, with the falling market, tax collection will not be worthwhile at all.
“Therefore, it is suggested that CGT should be eliminated for next 12-24 months.”
This will be a big headline change, with no revenue impact, and will encourage new domestic and international investors to come into the market.
The PSX made following proposals related to CGT:
i. To eliminate CGT for next 12-24 months, if that is not possible then;
ii. Since the current rate of 15 percent is very high and that too is without any benefit of holding period, therefore it is proposed to reduce this rate in line with other regional and OECD countries such as Bahrain, Hong Kong, India, Malaysia, Mauritius, Qatar, UAE, New Zealand, Hungary, Norway etc. where there is no or very low capital gain tax as compared to Pakistan.
iii. when CGT was first introduced in the year 2011, to encourage and attract long term investment, the tax rate was:
Less than six months: 10 percent
More than six months but less than 12 months: 7.5 percent
More than one year: zero percent.
The PSX proposed rates at:
Holding period up to twelve months: 10 percent
Holding period more than twelve months: zero percent.
-
Stock market gains 605 points on positive sentiments
KARACHI: The stock market gained 605 points on Wednesday owing to positive sentiments prevailed during the day.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,159 points as against 32,553 points showing an increase of 605 points.
Analysts at Arif Habib Limited said that the market opened on a positive note today with +211 points at the opening bell.
The benchmark index gained 605 points during the session and closed at session’s high.
Oil stocks got traction from positive trend in international crude oil price (WTI) that increased by 14 percent and helped E&P stocks to post price gains.
Cement sector maintained the momentum throughout the day, except for realizing profit booking by the end of session, showing signs of regression in DGKC.
Banking sector stocks also stay muted amid low volumes, due to prospects of rate cut.
Cement sector posted highest trading volumes with 43.9 million shares, followed by O&GMCs (11.8 million) and E&P (10.8 million).
Among scrips, MLCF topped the volumes with 18.4 million shares, followed by HASCOL (8.2 million) and DGKC (7.3 million).
Sectors contributing to the performance include E&P (+177 points), Power (+121 points), Fertilizer (+85 points), Cement (+67 points), Inv Banks (+33 points) and Banks (-22 points).
Volumes declined from 157.9 million shares to 140.5 million shares (-11 percent DoD). Average traded value, on the contrary, increased by 31 percent to reach US$ 47.6 million as against US$ 36.3 million.
Stocks that contributed significantly to the volumes include MLCF, HASCOL, DGKC, EFERT and PIOC, which formed 33 percent of total volumes.
Stocks that contributed positively to the index include HUBC (+116 points), OGDC (+61 points), POL (+50 points), FFC (+45 points) and LUCK (+39 points).
Stocks that contributed negatively include BAHL (-35 points), HBL (-12 points), NESTLE (-8 points), HMB (-4 points), and PSO (-2 points).
-
Stock market gains 239 points on further rate cut expectations
KARACHI: The stock market gained 239 points on Tuesday owing to expected lower inflation and possible further rate cut.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,553 points as against 32,315 points showing an increase of 239 points.
Analysts at Arif Habib Limited said that the market saw rebound of cement sector as the concerns over cement price / bag dissipated.
Upcoming data release on inflation and possible rate cut helped investors take a positive view on equities.
International crude oil prices edged lower, with WTI slipping below US$ 11/bbl that kept pressure on E&P stocks.
PSO, on the other hand, posted price gains during the session.
Banking sector stocks also saw selling pressure due to the view of rate cut.
Cement sector maintained top position in trading volumes with 59.6 million shares, followed by Vanaspati (20.5 million) and Banks (16.8 million).
Among scrips, MLCF led the trading volumes with 36.2 million shares, followed by UNITY (20.5 million) and DGKC (6.6 million).
Sectors contributing to the performance include Cement (+92 points), Power (+45 points), Food (+45 points), Fertilizer (+31 points), O&GMCs (+21 points), Banks (-39 points).
Volumes increased from 122.2 million shares to 159.4 million shares (+29 percent DoD). Average traded value also increased by 10 percent to reach US$ 36.1 million as against US$ 33 million.
Stocks that contributed significantly to the volumes include MLCF, UNITY, DGKC, BOP and HASCOL, which formed 48 percent of total volumes.
Stocks that contributed positively to the index include HUBC (+49 points), ENGRO (+36 points), LUCK (+33 points), NESTLE (+23 points) and PSO (+20 points).
Stocks that contributed negatively include BAFL (-23 points), UBL (-19 points), HBL (-14 points), DAWH (-13 points), and PAKT (-12 points).
-
SECP extends submission of AML/CFT quarterly information up to May 31
ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has extended the date up to May 31, 2020 for submission of mandatory information related to anti money laundering (AML)/ counter financing of terrorism (CFT) for the corporate sector.
The SECP on Monday due to the recent outbreak of pandemic Coronavirus (COVID- 19) and its impact on the public health and the lockdown situation in the country, the Regulated Persons are facing various difficulties while ensuring compliance with regulatory requirements related to reporting and submission of information in the manner prescribed under Directive 55(1)/2020 dated January 28, 2020.
The term Regulated Person (“RP”) has been defined in the Anti Money Laundering and Countering Financing of Terrorism (AML-CFT) Regulations, 2018 (“the Regulation”) as the “Regulated Person” means Securities Brokers, Futures Brokers, Insurers, Takaful Operators, NBFCs and Modarabas for the purposes of these regulations.
The Securities and Exchange Commission of Pakistan (SECP) in discharge of its statutory responsibilities for effective AML/CFT regulation of its regulated financial sector seeks to clarify as follows:
i. Relaxation in submission of quarterly information under Directive 55(1)12020:
In view of Directive 55(1)12020 dated January 28, 2020 a thirty days extension in filing of AML/CFT quarterly information is provided to all RPs facing difficulties in submission of information for period ended March 31, 2020 that is required to be submitted by April 30,2020.
Now, the said extension to submit quarterly information is being extended till May 31, 2020 for the quarter ended March 31, 2020 only.
ii. Companies to make necessary work arrangements for ensuring regulatory compliances:
As safety of employees is priority of the companies during the coronavirus (COVIT-19) outbreak, therefore RPs are encouraged to make necessary arrangements for the use of technology and related applications in order to enable them to work from home to meet the regulatory compliances.
-
Stock market plunges by 492 points as energy scrips remain under pressure
KARACHI: The stock market plunged by 492 points on Monday as energy scrips remained under pressure owing to slide in international oil prices. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,315 points as against 32,806 points showing a decline of 492 points.
(more…) -
Weekly Review: market likely to stay range bound due to Ramazan
KARACHI: The trading activities in the stock market likely to stay range bound during next week due to commencement of the holy month of Ramazan.
Analysts at Arif Habib Limited said that market to remain range bound in the upcoming week.
With commencement of the month of Ramazan, volumes may dry down. While extension in lockdown by the Federal government to contain the spread of Corona may also build pressure on businesses and keep sentiment at the index lackluster.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.9x (2020) compared to Asia Pac regional average of 10.2x and while offering DY of around 8.5 percent versus around 3.1 percent offered by the region.
The market commenced on a positive note, continuing the unpreceded rally witnessed on last Friday over SBP’s surprise rate cut of 200bps.
Albeit, the euphoria was short lived with investors parring earlier gains as banks felt the heat of compression in NIMs while oil scrips tanked with international oil prices.
The local bourse displayed a mixed trend for the remainder of the week. Initially leveraged stocks gained traction (cements and steel; amid rate cut and news of potential price hikes) but market participants resorted to profit-taking by week-end as results disappointed.
Whereas sentiment of the banking sector was eroded with the State Bank barring banks from declaring dividends in the March and June quarter of the ongoing year so as to conserve capital.
Albeit, large banks posted gains the following day on clarity regarding disbursement provision in case of board approved dividends for the outgoing quarter. With that said, the KSE-100 closed at 32,806 points (down by 0.08 percent / 25 points WoW).
Sector-wise negative contributions came from i) Oil & gas exploration companies (-48.6 points), ii) Power generation and distribution (-43.8 points), and iii) Commercial banks (-43.5 points).
While positive contributions were led by i) Cement (128.2 points), ii) Fertilizer (63.9 points), and iii) Automobile assemblers (34.0 points).
Foreign offloading during the week arrived at USD 2.5 million compared to a net sell of USD 14.2 million last week. Selling was witnessed in Fertilizer (USD 4.8 million) and Banks (USD 4.1 million).
On the domestic front, major selling was reported by Individuals (USD 11.7 million) and Broker Proprietary (USD 4.7 million). Average Volumes settled at 261 million shares (up by 46.3 percent WoW) while average value traded clocked-in at USD 71 million (up by 88.5 percent WoW).