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  • Stock market ends down by 54 points in selling activities

    Stock market ends down by 54 points in selling activities

    KARACHI: The stock market declined by 54 points on Thursday amid selling pressure in various scrips. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,507 points as against 42,561 points showing a decline of 54 points.

    Analysts at Arif Habib Limited said that the market traded in the range of -122 points and +345 points, closing the session at -54 points.

    Cement Sector stocks performed well on the expectation of rate hike in North and meeting among Cement manufacturers, however, later during the session the expectation did not materialize which resulted in Cement stocks losing price gains made earlier.

    OGDC, which rebounded from yesterday’s lower circuit, maintained the position but closed red. Decline in international crude prices caused investors to stay cautious on Oil & Gas chain and therefore OMCs and Refineries faced selling pressure.

    Cement sector led the volumes with 79.3 million shares, followed by Technology (34.9 million) and Banks (21.8 million). Among scrips, MLCF realized volumes of 27.5 million, followed by WTL (16.5 million) and FCCL (13.6 million).

    Sectors contributing to the performance include Chemical (+14 points), Banks (+9 points), Tobacco (-32 points), Power (-14 points), Autos (-14 points), E&P (-11 points) and O&GMCs (-11 points).

    Volumes increased from 178 million shares to 230.8 million shares (+30 percent DoD). Average traded value increased by 5 percent to reach US$ 63.2 million as against US$ 60.1 million.

    Stocks that contributed significantly to the volumes include MLCF, WTL, FCCL, DGKC and BOP, which formed 36 percent of total volumes.

    Stocks that contributed positively include HBL (+24 points), COLG (+17 points), EFERT (+9 points), BAFL (+7 points) and SRVI (+7 points). Stocks that contributed negatively include PAKT (-32 points), LUCK (-14 points), HUBC (-13 points), OGDC (-12 points), and HMB (-11 points).

  • Rupee depreciates by 9 paisas on import payment demand

    Rupee depreciates by 9 paisas on import payment demand

    KARACHI: The Pak Rupee depreciated by nine paisas on Wednesday owing to demand for import and corporate payments.

    The rupee ended Rs154.62 to the dollar from previous day’s closing of Rs154.53 in interbank foreign exchange market.

    Currency dealers said that the market witnessed buying activities in foreign currency from importers and corporate buyers.

    The foreign currency market initiated in the range of Rs154.52 and Rs154.55. The market recorded day high of Rs154.63 and low of Rs154.55 and closed at Rs154.62.

    The exchange rate in open market however witnessed appreciation in rupee value. The buying and selling of the dollar was recorded at Rs154.50/Rs154.80 from previous day’s closing of Rs154.60/Rs154.90 in cash ready market.

  • Atlas Honda reports 73% decline in after tax profit

    Atlas Honda reports 73% decline in after tax profit

    KARACHI: The manufacturer of Honda Cars in Pakistan has reported 73 percent decline in profit for the period (April-December) 2019.

    According to financial results of the company shared with Pakistan Stock Exchange (PSX) on Thursday the company declared profit after tax to the tune of Rs710 million during the period as compared with Rs2.68 billion in April – December 2018.

    The company also declared loss of Rs41.25 million for the quarter ended October – December 2019 as compared with profit of Rs601.59 million in the same quarter of the last year.

    According to financial results for the third quarter ended December 31, 2019, Honda Atlas Cars (Pakistan) Limited reported massive fall of 54 percent in its sales for the period.

    The car sales of the company fell to Rs9.86 billion during October – December 2019 as compared with Rs21.29 billion in the corresponding period of the last year.

    The domestic car industry is witnessing sharp slumps in sales due to various reasons including significant depreciation of Pak Rupee, increase in prices and high cost of manufacturing.

    The gross profit of the company also fell to Rs646.29 million during the quarter under review as compared with Rs1.63 billion in the same period of the last year.

  • Policy rate likely unchanged on high inflation

    Policy rate likely unchanged on high inflation

    KARACHI: The State Bank of Pakistan (SBP) is likely to keep the policy rate unchanged due to the recent surge in inflation, analysts said on Thursday.

    Analysts at Arif Habib Limited expect inflation to remain elevated in upcoming months on account of regular adjustment in electricity price (fuel cost adjustment and base tariff hike), another round of gas price increase, increase in prices of petroleum products, and continuous surge in prices of perishable and non-perishable food items.

    On the monetary policy front, they maintain a status quo stance on the upcoming Monetary Policy Statement (MPS) scheduled on 28th Jan’20, with no change expected in interest rate (policy rate to be maintained at 13.25%) as they believe the surge in inflation is due to supply disruptions of key commodities and this might settle down in coming months. We expect inflation to start declining from March 2020 to 11.5% due to the high base effect. After considering forecasted inflation, we expect rate cuts to begin from March 2020.

    They expect January 2020 inflation to settle at 13.58% YoY compared to 5.6% in Jan’19 and 12.63% in December 19, respectively.

    The YoY uptick in CPI is expected on the back of i) increase in prices of non-perishable products including Pulse Moong, Chicken, Pulse Gram, Eggs, Gur and Wheat Flour, ii) increase expected in quarterly house rent index by 1.5%, and iii) increase in prices of petroleum products.

    Whereas a decline in prices of perishable items is expected to keep the inflation restrained. This will take the 7MFY20 average inflation to 11.46% compared to 5.9% in 7MFY19. On a yearly basis, an increase in inflation will likely be led by Food (+21% YoY), Transport (+15.4%YoY), Alcoholic Beverages & Tobacco (+14.6% YoY), and House Hold Equipment (+12.9%).

    On a MoM basis, CPI reading is expected to increase by 1.20% attributable to surge in House Hold Equipment index (+2.4% MoM), Housing Index (+1.7% MoM), Food index (+1.4% MoM) and Transport Index (+1.4% MoM).

    As per three weeks Sensitive Price Index (SPI) data published by the Pakistan Bureau of Statistics (PBS), average prices of Pulse Moong, Chicken, Pulse Gram, Eggs, Gur and Wheat Flour are expected to register a jump of 15%, 13%, 13%, 11%, 8% and 5% MoM, respectively.

    On the other hand, meagre decline in prices of essential food items like Onions (-15% MoM), and Tomatoes (-5% MoM) are expected to keep the food index contained.

  • CNIC is must on purchases above Rs50,000 from Feb 01

    CNIC is must on purchases above Rs50,000 from Feb 01

    ISLAMABAD: The mandatory requirement of Computerized National Identity Card (CNIC) on purchases of above Rs50,000 to apply from February 01, 2020.

    Sources in Federal Board of Revenue (FBR) on Wednesday said that the condition of CNIC on purchases above Rs50,000 will be applicable from February 01, 2020.

    The FBR will take legal action against those who violate the mandatory requirement, they added.

    Through Finance Act, 2019, it was made mandatory that a registered person making a taxable supply shall issue a serially numbered tax invoice at the time of supply of goods containing the following particulars, in Urdu or English language, namely: –

    (a) name, address and registration number of the supplier;

    (b) name, address and registration, number of the recipient and NIC or NTN of the unregistered person, as the case may be, excluding supplies made by a retailer where the transaction value inclusive of sales tax amount does not exceed rupees fifty thousand, if sale is being made to an ordinary consumer.

    Explanation. – For the purpose of this clause, ordinary consumer means a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing.

    The condition of CNIC or NTN was made mandatory from August 01, 2019.

    However, on opposition from small traders the government after an agreement on October 30, 2019, postponed the applicability of CNIC till January 31, 2020.

    The FBR on October 04, 2019 issued definition / rules related to condition of CNIC.

    The FBR said that keeping in view the problems reported by the registered persons is ensuring proper identity of the buyer to fulfil the requirement of reporting NTN/NIC of the buyer in terms of section 23 of the Sales Tax Act, 1990, it is directed that the NIC/NTN of the buyer with respect to taxable supplies to an unregistered person shall be deemed to have been reported in good faith by the supplier provided that:

    (a) The tax invoice complies with the requirements of section 23(b) of the Act.

    (b) Payment made by or on behalf of the unregistered purchaser of the amount of the tax invoice, inclusive of sales tax and applicable further tax, is deposited into the supplier’s declared business bank account.

    (c) The NIC provided by the purchaser is found authenticated by the National Data and Registration Authority (NADRA).

    (d) The NIC/NTN provided is not of the employee of the seller or of his associates as defined under the Income Tax Ordinance, 2001.

    The issuance of a show cause notice to a registered person being a seller on account of any matter arising out of the NIC provided by a purchaser shall not be made without the prior approval of the Member (IR-Operations), FBR after providing an opportunity to be heard.

  • Sindh governor visits USC outlets to check availability of essential items

    Sindh governor visits USC outlets to check availability of essential items

    KARACHI: Sindh Governor Imran Ismail on Wednesday paid surprise visit to outlets of Utility Stores Corporation (USC) to check the availability of essential items under Prime Minister Relief Package.

    The Sindh governor visited the stores on the directives of Prime Minister Imran Khan. Chairman USC Zulqarnain was also with him during visits of various outlets in the city.

    The governor visited USC outlet at Gulshan e Iqbal to witness the sale of 12,000 bags of wheat flour to the masses.

    While talking to media, the governor said that hype was created regarding wheat shortage. He said that the situation was not as serious as was portrayed by various quarters.

    He said that PASCO warehouses had storage of 300,000 tons of wheat. In order to supply this stock the transport of NLC could be used, he added.

    He said that it was an artificial shortage and the government was ensuring the availability of the commodity.

    Ismail said that the prime minister was on attending World Economic Forum at Davos but he was worried about such situation.

    He said that the government had ensured availability of 10-kg wheat flour bag at Rs400 as against this bag was available at Rs600 in the open market.

    USC Chairman said that under PM Package other items such as ghee, pulses, sugar etc were also available at subsidized prices. The government has released a fund of Rs7 billion for the subsidized items, he added.

  • Committee constituted to probe wheat crisis

    Committee constituted to probe wheat crisis

    KARACHI: Prime Minister Imran Khan has constituted a high-level committee to probe wheat/flour crisis and fix responsibility.

    Taking strict notice of the recent wheat/flour related controversy, Prime Minister Imran Khan has constituted a high-level committee to identify and fix responsibility, if any, on any individual/officer/organization, including any purported benefit to a private party, besides suggesting a way forward for future course of action, a statement said on Wednesday.

    The committee comprises of Director General Federal Investigation Authority, as its convener, representative of Intelligence Bureau not below BS-20/21 and Director General Anti Corruption Punjab, as its members.

    The Convener may co-opt any other member(s). According to directions issued by PM Office, the inquiry report shall, inter alia, include identification of causes; circumstances leading to the wheat/flour related controversy; assessment/projection of future stock leading to allowing export of wheat/wheat products and subsequent imposition of ban on exports; management of wheat stocks, within Federal Government and provinces, and coordination with provinces, and any other issue, deemed appropriate, related to the wheat/flour related controversy.

    The inquiry shall be completed and the report is to be submitted to the Prime Minister within a fortnight (06th February 2020).

  • Sales tax rates on services provided by goods transportation

    Sales tax rates on services provided by goods transportation

    KARACHI: Sindh Revenue Board (SRB) has issued updated working tariff for tax year 2020 and notified sales tax rates on services provided or rendered by persons engaged in inter-city transportation.

    According to the SRB, the sales tax shall be 13 percent on services provided or rendered by persons engaged in inter-city transportation or carriage of goods by road or through pipeline or conduit.

    However, this rate shall be reduced at 8 percent with the condition that input tax credit/adjustment shall not be admissible.

    The sales tax rate shall be 13 percent on services provided or rendered by persons engaged in inter-city transportation or carriage of goods by road through truck addas or through bus/wagon stands excluding road transportation or carriage of goods through addas or through bus/wagon stands excluding road transportation of

    (i) petroleum oils through oil tankers;

    (ii) automotive vehicles, classified under tariff headings of Chapter 87 of the First Schedule to the Customs Act, 1969, as are transported or carried through specialized vehicle carriers; and

    (iii) Goods and cargo through vehicles operated by Fleet Logistic Companies having not less than 25 vehicles in its fleet

    The reduced rate of three percent is allowed with condition that input tax credit shall not be admissible.

    These services are also exempt from sales tax on following:

    Services provided or rendered by persons engaged in inter-city transportation of goods by road during the period from July 01, 2014 to the June 30 ,2015, provided that :

    (a) Such person has neither billed /involved/ charged the service recipient any amount of tax nor collected or received any amount of tax from the service recipient on account of such transportation or carriage services as were provided during the said Period;

    Provided further that the amounts of tax billed or invoiced or charged or received or collected, if any, by the such person for the services provided or rendered during the period from the 1st July,2014 to the 30th June, 2015, are e-deposited in Sindh, Government’s head of account “B-02384” in the prescribed manner on or before the 15th day of July, 2015.

    (b) Such person gets e-registered with the SRB on or before 25th day of July, 2015, in accordance with the provisions of section 24 of the Act, read with the rules prescribed thereunder; and

    (c) this exemption shall not entitle any exemption benefit or any claim for refund of the amount of tax already deducted or withheld or paid or deposited by any person in relation to the services provided or rendered or received or procured during the period from 01st day of July, 2014 to the 30th day of June, 2015. Such amount shall be deemed to be the tax under section 16 of the Act and shall be e-deposited in Sindh Government head of account “B-02384” in the prescribed manner on before the 15th day of July, 2015, failing which it shall be recovered alongwith penalty and surcharge as prescribed in the Act.

  • Telenor, Jazz awarded Rs680 mn next generation broadband project

    Telenor, Jazz awarded Rs680 mn next generation broadband project

    ISLAMABAD: The Ministry of Information Technology on Wednesday approved award of contracts to Telenor and PMCL (Jazz) worth Rs680 Million in total for Kurram and Sanghar Lots.

    PMCL (Jazz) is being awarded the contract of Kurram Lot while Telenor is being awarded the contract of Sanghar Lot under Next Generation Broadband for Sustainable Development (NG-BSD) Programme.

    Federal Secretary Ministry of Information Technology and Telecommunication Shoaib Ahmad Siddiqui chaired 68th Board of Directors meeting of Universal Service Fund Company here on Wednesday.

    Chairman PTA Maj Gen (R) Amir Azeem Bajwa was also present in the meeting.

    This project is part of the inclusive approach of the Government and to strengthen the pillar of connectivity under Digital Pakistan.

    During the meeting Chairman USF Board and Secretary IT was apprised about the progress of USF projects. The Hi-speed Broadband services in Kurram Lot will benefit an unserved population of approximately 400,000 thereby covering 200 unserved muazas and an approximate unserved area of 2,900 sq. km.

    Kurram Lot encompasses Frontier Region Kurram, Lower Kurram and Upper Kurram tehsils. Similarly, an unserved population of approximately 1.4 million will gain advantage from Hi-speed Broadband services in Sanghar Lot.

    The Lot consists of Sanghar and Umerkot districts with an approximate unserved area of 12,000 sq. km and 500 unserved mauzas.

    The Chairman USF Board and Secretary IT, Shoaib Ahmad Siddiqui emphasized on connecting the people of Pakistan who did not have access to latest ICT facilities.

    He also said these projects will bring the people of Kurram and Sanghar at par with the wider society and helpful in solving the problems of illiteracy, poverty and unemployment.

    Furthermore, the Federal Secretary welcomed Prime Minister’s most recent expression of support for the continued and ongoing work of Digital Pakistan.

    He stressed the importance of the Ministry of IT and Telecom remaining closely engaged to support and encourage implementation of the vision.

    In addition to this, he also acknowledged other board members’ valuable contribution to make advancements in implementation of USF projects.

    The Board greatly appreciated Chairman USF Board and Secretary IT for providing guidance and wisdom to accomplish USF mission.

    Other board members comprising Shabahat Ali Shah, Executive Director, NITB; Ifran Wahab, CEO-Telenor Cluster Head for Emerging Asia and Nominee of Mobile Cellular Operators; Imran Akhtar Shah, VP for Government Sales, Super Net Pvt Ltd and Nominee of Data Licensees; Rashid Khan, CEO PTCL and Nominee of Fixed Line Operators; Kaukab Iqbal, Chairman, Consumer Association of Pakistan and Nominee of Consumer Group and management of USF Co. also attended the meeting.

  • Stock market ends down in mixed trading sessions

    Stock market ends down in mixed trading sessions

    KARACHI: The stock market ended down by 65 points on Wednesday in mixed trading sessions during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,561 points as against 42,626 points showing a decline of 65 points.

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