KARACHI – The Pakistan Stock Exchange (PSX) saw a significant surge as the benchmark KSE-100 index ended the trading session with a gain of 364 points, closing at 39,413 points as opposed to 39,049 points, offering a positive start to the trading week.
This bullish trend was attributed to the anticipation of tax relief, specifically in advance tax and capital gains tax.
Market sentiment was bolstered by the upcoming mini-budget, which the government plans to unveil on January 23, 2019, featuring various budgetary measures. These measures have raised hopes among investors and stockbrokers for potential relief in the Capital Gains Tax (CGT), as indicated by the recent press briefing conducted by the Finance Minister.
Financial analysts at Arif Habib Limited noted that this development had a positive impact on the stock market. As a result, the market remained largely positive across the board, and investors showed interest in various sectors, including Technology, Cable, Power, and Chemicals. Notably, Technology, Cable, Power, and Chemicals sectors witnessed increased buying activity.
The trading session also highlighted some prominent stocks on the volumes chart, with Pakistan Elektron Limited (PAEL), K-Electric Limited (KEL), TRG Pakistan Limited (TRG), and Lotte Chemical Pakistan Limited (LOTCHEM) making up nearly 35 percent of the total market volume. These stocks attracted significant investor interest and contributed to the overall market performance.
In terms of sectors, several played a pivotal role in boosting the market. Banks contributed 80 points, Fertilizer added 65 points, Cement provided 54 points, Pharma contributed 39 points, and Oil and Gas Marketing Companies (O&GMCs) brought in an additional 27 points. These sectors collectively contributed to the index’s positive movement.
Despite the market’s overall gain, the trading session witnessed a slight dip in trading volumes. The volume of shares traded decreased from 123.5 million shares to 115.3 million, marking a 7 percent drop compared to the previous trading day. Similarly, the average traded value decreased by 14 percent, reaching $39.5 million, down from $45.8 million.
Several stocks played a significant role in the trading volumes, including PAEL, KEL, TRG, LOTCHEM, and Bank of Punjab (BOP), which collectively accounted for 38 percent of the total trading volume.
The PSX’s performance reflects the market’s optimism and expectations for tax relief, providing a boost to investor confidence. As investors eagerly await the details of the upcoming mini-budget and its potential implications for tax policies, the stock market continues to remain a focal point for economic developments in Pakistan.
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