Stock market gains 817 points on reports of downward revision in tax target

KARACHI: The stock market continued to make recovery on Wednesday and gained 817 points on Wednesday owing to reports of IMF affirmation to revise tax collection target downwards.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,531 points as against 39,714 points showing a gain of 817 points.

Analysts at Topline Securities said that the market continued its momentum as the index increased by 2 percent during the course of the day to close at 40,531-level.

This rally in market was largely attributed to news of ongoing negotiation between Federal Board of Revenue (FBR) and International Monetary Fund (IMF) to revise down revenue target.

Earlier news flows suggested that IMF had agreed to lower revenue collection target to around Rs4.9 trillion (against a previous target of Rs5.2 trillion). The FBR has proposed the target of Rs4.7 trillion, the analysts said.

Traded volume and value increased by 12 percent and 25 percent on DoD basis to 180 million shares and Rs.7.5 billion respectively.

HASCOL was the volume leader for the second consecutive day, as 16mn shares of the OMC changed hands.

MEBL declared its 4Q2020 result announcement in which it posted consolidated EPS of Rs.3.68, along with a final cash dividend of Rs.2/share.

This result announcement was in line with expectation. CHCC in cement sector declared its 2QFY20 result announcement in which it posted LPS of Rs.1.14, this result announcement was better than the street estimate.

Following the result announcement investor interest was witnessed in the cement company, closing 3.30 percent higher.

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