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Category: Stock & Commodity

  • Stock market shed 73 points in range bound activity

    Stock market shed 73 points in range bound activity

    KARACHI: The stock exchange declined by 73 points on Friday in a range bound trading activity.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,111 points as against 32,184 points showing a decline of 73 points.

    Analysts at Arif Habib Limited said that the market remained range bound today, trading above 32,000 level, although moved between +149 points and -129 points during the day.

    Volumes again registered healthy growth from 137 million shares yesterday to 153 million shares.

    Oil Chain remained under selling pressure with the exception of PSO that showed considerable gain.

    Banks, Steel, Cement also downplayed, which brought the index under pressure in the second session. MLCF issued financial results today that saw 85 percent right issuance besides nominal dividend of 5 percent.

    By the end of session, MLCF hit lower circuit and closed at that level. Cement sector led the volumes with 26.3 million shares followed by Technology (16 million) and Chemical (13.4 million).

    Scrip wise activity reflects MLCF registering 18 million shares, followed by TRG (6.9 million) and PIBTL (6.6 million).

    Sectors contributing to the performance include Cement (-49 points), Banks (-25 points), Technology (-11 points), Investment Banks (+29 points), O&GMCs (+15 points).

    Volumes increased further increased from 137 million shares to 153 million shares (+12 percent DoD). Average traded value on the contrary witnessed slight decline of 1.3 percent DoD to reach US$ 37.2 million as against US$ 37.7 million.

    Stocks that contributed significantly to the volumes include MLCF, TRG, PIBTL, LOTCHEM and UNITY, which formed 29 percent of total volumes.

    Stocks that contributed positively include DAWH (+30 points), PPL (+20 points), PSO (+14 points), BAFL (+12 points) and EPCL (+7 points). Stocks that contributed negatively include OGDC (-22 points), HBL (-19 points), LUCK (-18 points), FCCL (-8 points), and TRG (-8 points).

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  • SECP board approves amendments to exchange traded fund regulations

    SECP board approves amendments to exchange traded fund regulations

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved amendments to Exchange Traded Funds Regulations and other regulations at its policy board meeting which met in Islamabad under the chairmanship of Professor Khalid Mirza, said a statement on Wednesday.

    The Policy Board welcomed the new Chairman, SECP, Aamir Khan and accredited his joining to the improvement in the stock market and development of new initiatives.

    The Policy Board reviewed the implementation of its decisions of previous meetings and was satisfied with the overall workings of the Commission. The Chairman and the Board commended Aamir Khan for ensuring that the decisions have been implemented in an expeditious and progressive manner.

    In order to facilitate launch of ETFs, the Policy Board, amongst several other recommendations of the Regulations Committee of the Board, approved amendments in the Exchange Traded Funds Regulations which have been revamped to add flexibility for fund managers to appoint separate intermediaries for performing the functions of market maker and authorized participant.

    This shall enable fund managers for on-boarding market makers easily which are now subject to rationalized regulations that aim to reduce cumbersome requirements and decrease the cost of doing business for market makers.

    In addition to regulatory changes, system level modifications have also been made to enable market makers for performing their functions seamlessly with minimum inventory.

    The approved regulatory amendments aim to provide maximum facilitation to fund managers and market makers through streamlined regulatory requirements based on international benchmarks.

    Other approvals of the Policy Board include:

    (i) Amendments in Futures Brokers (Licensing & Operations) Regulations, 2018 which provide relaxation in education requirement of CEO, elimination of the requirement of NCB, deletion of the requirement of wealth statement, and reduction in frequency of reports by compliance officer,

    (ii) Amendments in the Securities Brokers (Licensing & Operations) Regulations 2016 extending the timeline for complying with financial resource requirements till December 2019, and deletion of requirement to submit NICL Building, 63 Jinnah Avenue, Islamabad certificate of commencement of business,

    (iii) Amendments in CDC Regulations – Reforms in CDC Regulatory Framework for ease of doing business by direct credit of securities in the CDS issued by way of right issue of public unlisted and private companies; relaxation in appointment of independent Transfer Agent by private and single member companies, and

    (iv) PSX to act as the sole frontline regulator and may draw upon the assistance of NCCPL and CDC to outsource the compliance function of PSX, to the extent of supervision or conducting any investigation, inspection or enquiry and monitoring compliance of securities brokers.

    The Policy Board was also given a presentation by the Commission pertaining to the implementation of the FATF Recommendations including instances of penalties imposed in various cases.

    The Policy Board directed that the FATF guidelines should be followed but the focus should remain on the areas that are critical to curb the menace of financing of terrorism/money laundering and we should take care not to affect business activity.

    The Securities and Exchange Policy Board, in pursuance of Section 12 of the Act 1997, comprises ex-officio members of the Ministries of Finance, Commerce, and Law, SBP, SECP and persons of eminence from the private sector.

  • Stock market ends down by 353 points on easing international oil prices

    Stock market ends down by 353 points on easing international oil prices

    KARACHI: The stock market fell by 353 points on Wednesday on easing oil prices in international market.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,555 points as against 31,909 points showing a decline of 353 points.

    Analysts at Arif Habib Limited said that after the restoration of crude production at Aramco facility in Abqaiq, international crude prices saw a downward trend and that similar trend was witnessed at PSX as well.

    Oil chain including E&P, OMCs, and Refineries drove the market with volume amid declining prices.

    IMF’s nod on government’s measures failed to give confidence to the investors on the macro-economic front.

    Besides, oil & gas chain, Cement sector also saw selling pressure, with the most decline observed in LUCK in past sessions.

    OGDC also posted higher than anticipated financial results but couldn’t bring any positivity to the falling stock price.

    Technology sector topped the volumes chart with 13.9 million shares followed by Cement (12.2 million) and O&GMCs (11.5 million).

    Scrip-wise activity shows WTL leading the volumes with 10.3 million shares followed by PAEL (8.5 million) and KEL (8.3 million).

    Sectors contributing to the performance include E&P (-123 points), Banks (-90 points), Fertilizer (-47 points), Cement (-45 points) and Power (-30 points).

    Volumes increased from 99.3 million shares as against 122 million shares (-19 percent DOD).

    Average traded value also declined by 24 percent to reach US$ 25.4 million as against US$ 33.3 million.

    Stocks that contributed significantly to the volumes include WTL, PAEL, KEL HASCOL and OGDC, which formed 38 percent of total volumes.

    Stocks that contributed positively include SEARL (+8 points), PSO (+8 points), NATF (+7 points), COLG (+6 points) and FCEPL (+4 points).

    Stocks that contributed negatively include PPL (-51 points), POL (-39 points), LUCK (-36 points), UBL (-25 points), and ENGRO (-22 points).

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  • NCCPL announces 100 percent higher tax collection from investors not on ATL

    NCCPL announces 100 percent higher tax collection from investors not on ATL

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Wednesday informed investors of Pakistan Stock Exchange (PSX) that tax rate on capital gain will be 100 percent higher for those not appearing in Active Taxpayers List (ATL).

    In a letter communicated to Pakistan Stock Exchange (PSX), the NCCPL said that through Finance Supplementary (Second Amendment) Act, 2019 amendments had been made to Income Tax Ordinance, 2001 under which 100 percent tax rate would be collected from those investors who were either not filed their income tax returns or late filers.

    The NCCPL has been authorized withholding agent to collect Capital Gain Tax (CGT) on behalf of Federal Board of Revenue (FBR) from investors of the PSX.

    The NCCPL said that 100 percent increased CGT rate will be applied to all the categories of investors not appearing in the ATL provided by the FBR.

    In Case of PSX the CGT rates for year 2019/2020 is as follow:

    — Where the security was acquired before July 01, 2013: zero percent will be for both investors in ATL and non-ATL.

    — Securities Acquired before July 1, 2016. Where holding period of a security is twenty-four months or more but the security was acquired on or after 1st July, 2013: the CGT rate will be 7.5 percent for ATL and 15 percent for not appearing in ATL.

    — Securities Acquired on or after July 1, 2016: the tax rate will be 15 percent for ATL and 30 percent for those not appearing in ATL.

    — Cash settled derivatives traded on Stock Exchange: the tax rate will be 5 percent and 10 percent for those not appearing in ATL.

    In case of MUFAP

    — Where the holding period of securities more than Four years: The tax rate will be zero percent for both investors having ATL or non-ATL status.

    — Stock Funds: For individuals and corporate if Dividend receipts of the fund are more than capital gains: the tax rate will be 10 percent for ATL and 20 percent for those investors not appearing in ATL.

    — Stock Funds: For individuals and corporate if dividend receipts of the fund are less than capital gains: the tax rate will be 12.50 percent and 25 percent for investors not appearing in ATL.

    — Other than Stock Funds – For individuals: the tax rate will be 10 percent for ATL and 20 percent for non-ATL.

    — Other than Stock Funds – For Corporate: the tax rate will be 25 percent for ATL and 50 percent for investors not appearing on ATL.

    In case PMEX

    — Future Commodity Contracts executed at Pakistan Mercantile Exchange: The tax rate will be 5 percent for ATL and 10 percent for investors not appearing on ATL.

    The NCCPL explained Section 37A of Income Tax Ordinance, 2001, as:

    Loss sustained 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 securities chargeable to tax under section 37A shall be carried forward to the following tax year and set off only against the gain of the person from disposal of securities chargeable to tax under section 37A, 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 computed.

  • Stock market ends flat amid profit taking

    Stock market ends flat amid profit taking

    KARACHI: The stock market ended flat on Tuesday despite profit taking was witnessed in the market following rise in international oil prices.

    The benchmark KSE-100 of Pakistan Stock Exchange (PSX) closed at 31,909 points as against 31,929 points showing a decline of 20 points.

    Analysts at Arif Habib Limited said that the market traded in a narrow range today with an oscillation of 337 points between +178 points and -159 points.

    Higher international crude prices managed to secure interest of investors in E&P & Refinery sectors, though OMCs saw profit booking.

    Besides, Banking sector scrips helped the Index to stay relatively positive and somewhat shielded the index from Cement sector onslaught that saw LUCK’s rates declining significantly in MoC.

    LUCK closed near day’s low, near lower circuits. With the exception of DGKC, which managed to post decent gains as compared to LDCP, other Cement sector scrips saw selling pressure.

    Cement Sector again managed to post high volumes with 25.5 million shares, followed by Cable (16.9 million) and Power (11.6 million).

    Among scrips, PAEL ranked top with 16.7 million shares, followed by MLCF (10.3 million) and DGKC (7.3 million).

    Sectors contributing to the performance include E&P (+35 points), Miscellaneous (+21 points), Banks (+17 points), Fertilizer (-36 points), Cement (-30 points), Power (-21 points).

    Volumes increased from 104.6 million shares to 121.8 million shares. Average traded value also increased by 4 percent to reach US$ 33.2 million as against US$ 31.9 million.

    Stocks that contributed significantly to the volumes include PAEL, MLCF, DGKC, KEL and TRG, which formed 38 percent of total volumes.
    Stocks that contributed positively include HBL (+35 points), UBL (+30 points), PSEL (+21 points), PPL (+20 points) and EFERT (+11 points).

    Stocks that contributed negatively include LUCK (-35 points), BAHL (-26 points), FFC (-20 points), ENGRO (-20 points), and HUBC (-17 points).

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    Stock market increases by 447 points on oil price rise expectations

  • Stock market increases by 447 points on oil price rise expectations

    Stock market increases by 447 points on oil price rise expectations

    KARACHI: The stock market increased by 447 points on Monday owing to hope of rise in oil prices following attack on Saudi Oil facility.

    (more…)
  • Weekly Review: market to move on policy rate decision, IMF visit

    Weekly Review: market to move on policy rate decision, IMF visit

    KARACHI: The stock market will move with the outcome of monetary policy announcement scheduled for Monday September 16, 2019 and expected visit of a delegation of International Monetary Fund (IMF) next week.

    Analysts at Arif Habib Limited said that the monetary policy committee is scheduled to convene on Monday September 16, 2019 and it is expected that the State Bank of Pakistan (SBP) to announce a 25 basis points cut which should relieve levered sectors such as Cements, Steel and select Automobile and Oil Marketing Companies.

    In addition, the staff-level delegation of the IMF is expected to visit Pakistan next week to review the county’s economic performance and any development in this regard will have implications for the stock market.

    Whereas, Prime Minister Imran Khan is scheduled to travel to Saudi Arabia on September 19, 2019 to discuss the Indo-Pak tensions over Kashmir.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 5.6x (2020) compared to Asia Pac regional average of 13.1x and while offering DY of ~9.8 percent versus ~2.4 percent offered by the region.

    The analysts said that the incumbent government adopted a stringent monetary policy in the past year to fix external imbalances but with good, comes the bad; this also dampened domestic demand and added to the companies’ financial woes.

    Albeit, the market demonstrated a stunning rally in the outgoing week with market participants anticipating a cut in the State Bank of Pakistan’s benchmark policy rate, post rebasing of CPI.

    Moreover, buying by certain provincial funds also garnered positivity at the index. The market closed at 31,481 points (up by 1,014 points / 3.3 percent WoW).

    Sector-wise positive contributions came from i) Commercial Banks (270 points), ii) Oil & Gas Exploration Companies (213 points), iii) Fertilizers (196 points), iv) Power Generation & Distribution (95 points), and v) Cement (86 points). Scrip-wise positive contributions were led by PPL (122 points), OGDC (89 points), LUCK (84 points), UBL (75 points) and FFC (72 points).

    Foreign buying was witnessed this week clocking-in at USD 1.01 million compared to a net sell of USD 5.32 million last week. Buying was witnessed in E&P (USD 1.4 million) and Cement (USD 1.0 million).

    On the domestic front, major selling was reported by Individuals (USD 4.8 million) and Banks / DFIs (USD 4.5 million). Average Volumes settled at 130 million shares (up by 39 percent WoW) while average value traded clocked-in at USD 38 million (up by 70 percent WoW).

  • Stok market falls by 65 points in narrow trading

    Stok market falls by 65 points in narrow trading

    KARACHI: The stock market ended down by 65 points on Friday in a narrow range trading of 86 points and -267 points with total volume of 103 million shares.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX)closed at 31,481 points as against 31,546 points showing a decline of 65 points.

    Analysts at Arif Habib Limited said that the market traded in a narrow range today between +83 points and -267 points with a total volume of 103 million shares.

    Mixed trend was witnessed in E&P scrips that brought the index in red zone. Cement and Steel sector scrips also made positive moves with ASTL and MUGHAL hitting upper circuits.

    Stocks that contributed to selling pressure mainly included HUBC, HBL and MLCF. Cement sector led the volumes table with 18.7 million shares followed by E&P (7.1 million) and Engineering (8.2 million). Among scrips, MLCF ranked top with 7.5 million shares followed by UNITY (7.1 million) and OGDC (6.8 million).

    Sectors contributing to the performance include Cement (+43 points), Fertilizer (+16 points), Insurance (+11 points), Banks (-116 points), Autos (-23 points), Power (-23 points).

    Volumes declined from 185.8 million shares to 103 million shares (-45 percent DoD). Average traded value also declined by 43 percent to reach US$ 29.9 million as against US$ 52 million.

    Stocks that contributed significantly to the volumes include MLCF, UNITY, OGDC, PAEL and LOTCHEM, which formed 30 percent of total volumes.

    Stocks that contributed positively include LUCK (+47 points), EFERT (+15 points), KAPCO (+15 points), PPL (+14 points) and UBL (+10 points). Stocks that contributed negatively include HBL (-69 points), HUBC (-35 points), MCB (-34 points), MARI (-17 points), and BAHL (-17 points).

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    Stock market gains 592 points on rate cut hope

  • Stock market gains 592 points on rate cut hope

    Stock market gains 592 points on rate cut hope

    KARACHI: The stock market gained 592 points on Thursday due to broad buying activity on hopes of rate cut in the upcoming monetary policy announcement.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,546 points as against 30,955 points showing an increase of 592 points.

    Analysts at Arif Habib Limited said that the market performed well today, with across the board buying activity.

    E&P, Banks and Cement contributed positively to the points table that showed a jump of 892 points during the session.

    Major reason for general positivity seems to be expectation of rate cut, which had an indication from recent auction of treasury bills that saw yield curve sliding further.

    Market on close, however, saw attrition of ~350 points closing the index to +553 points (unadjusted). E&P stocks saw reversal in prices by end of session. Cement sector led the volumes with 31 million shares, followed by Technology (26.4 million) and Power (22.9 million). WTL led the volumes with 18.3 million shares, followed by KEL (11.7 million) and MLCF (11.1 million).

    Sectors contributing to the performance include Banks (+179 points), Fertilizer (+111 points), Cement (+75 points), Power (+51 points) and E&P (+51 points).

    Volumes increased from 99.6 million shares to 185.8 million shares (+86 percent DoD). Average traded value also increased by 64 percent to reach US$ 51.9 million as against US$ 31.6 million.

    Stocks that contributed significantly to the volumes include WTL, KEL, MLCF, HUBC and FCCL, which formed 33 percent of total volumes.

    Stocks that contributed positively include BAHL (+49 points), LUCK (+48 points), FFC (+42 points), ENGRO (+41 points) and PPL (+39 points). Stocks that contributed negatively include MUREB (-10 points), KTML (-4 points), HASCOL (-2 points), AGIL (-2 points), and SML (-1 point).

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    Stock market gains 488 points on positive talks on FATF meeting

  • Stock market gains 488 points on positive talks on FATF meeting

    Stock market gains 488 points on positive talks on FATF meeting

    KARACHI: The stock market gained 488 points on Wednesday owing to positive talks on conditions of Financial Action Task Force (FATF) at a meeting in Bangkok, Thailand.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 30,954 points as against 30,467 points showing an increase of 488 points.

    Analysts at Arif Habib Limited said that the index fared well on the first day of the short trading week after a long weekend.

    Positive expectations from ongoing FATF meeting in Bangkok and relatively higher international crude prices kept the investors’ interest alive.

    OGDC and PPL led the index by hitting upper circuit and gaining significant volumes, however, both scrips closed below upper circuit.

    The index also drew support from Banking sector, which saw HBL hitting upper circuit and other scrips trading mostly in green.

    Cement, Steel, O&GMCs mostly played on the negative side. Most volume was observed in Cement sector that saw 18.1M shares, followed by E&P (12.2 million) and Technology (11.1 million). Among scrips, MLCF led the volumes table with 11.5 million shares followed by OGDC (8.8 million) and WTL (6.7 million).

    Sectors contributing to the performance include Banks (+207 points), E&P (+163 points), Fertilizer (+81 points), Power (+67 points), Cement (-33 points) and Food (-17 points).

    Volumes increased from 48.2mn shares to 99.6mn shares (+107 percent DoD). Average traded value also increased by 103 percent to reach US$ 31.6 million as against US$ 15.5 million.

    Stocks that contributed significantly to the volumes include MLCF, OGDC, WTL, EFERT and HUBC, which formed 37 percent of total volumes.

    Stocks that contributed positively include HBL (+87 points), OGDC (+77 points), PPL (+68 points), HUBC (+65 points) and MCB (+46 points). Stocks that contributed negatively include LUCK (-11 points), NESTLE (-9 points), FCCL (-8 points), DGKC (-7 points), and MUREB (-6 points).

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