KARACHI: The Pakistan stocks experienced a modest decline on Wednesday, closing down by 86 points amid a day characterized by range-bound trading activity.
(more…)Tag: Pakistan Stock Exchange
-
Advance tax on stock exchange transactions abolished
KARACHI: The government through budget 2021/2022 has abolished advance tax on stock exchange transactions and in this regard required amendment has been proposed through Finance Bill, 2021.
Tax experts at KPMG Taseer Hadi & Co. in its commentary on budget 2021/2022 said that the stock exchanges registered in Pakistan were required to collect advance tax from their members on purchases and sales of shares in lieu of tax on commission earned by them.
The Finance Supplementary (Second Amendment) Act, 2019 abolished the collection of this advance tax effective 01 March 2019.
Resultantly, applicability of section 233 of the Income Tax Ordinance, 2001 i.e. withholding of tax on commission income was triggered.
However, there is a point of view that taxation of income earned by members of stock exchange registered in Pakistan still covered under this section.
In view of above, the Bill proposes to withdraw section 233A of the Income Tax Ordinance, 2001, hence, after such amendment, the taxability of income earned by members of stock exchanges now compulsorily fall under section 233 of the Ordinance.
The bill also proposed to abolish collection of tax by National Clearing Company of Pakistan Limited (NCCPL).
NCCPL collects advance tax from the members of Stock Exchanges registered in Pakistan on margin financiers, trading financiers and lenders in respect of margin financing in share business. The Bill proposes to withdraw such collection of tax.
-
Stocks end flat in range bound trading
KARACHI: The stock market ended flat on Tuesday in a range bound trading activity. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 47,987 points as against previous day’s closing of 48,013 points, showing a decline of 25 points.
Analysts at Arif Habib Limited said that the market remained depressed trading in a narrow range between -81 points and +142 points, closing the session -25 points.
Lack of direction in the market and docile reaction to price triggers (particularly Crude Oil) has led the market into obscurity. Selling pressure remained evident in Cement, E&P, O&GMCs, Steel, Technology and Power sectors.
Textile sector did see some positive activity with NCL, NML, GATM and ILP showing better price performance. Among scrips, SILK realized trading volume of 75.1 million shares, followed by WTL (48.2 million) and KEL (37.4 million).
Sectors contributing to the performance include Textile (+68 points), Technology (+18 points), E&P (+16 points), Food (+12 points) and Miscellaneous (-32 points).
Volumes declined from 839.2 million shares to 610.7 million shares (-27 percent DoD). Average traded value also declined by 2 percent to reach US$ 98.1 million as against US$ 100.5 million.
Stocks that contributed significantly to the volumes include SILK, WTL, KEL, ANL and TPL, which formed 37 percent of total volumes.
Stocks that contributed positively to the index include SYS (+30 points), KTML (+21 points), MARI (+21 points), ANL (+20 points) and GATM (+13 points). Stocks that contributed negatively include PSEL (-34 points), UNITY (-12 points), DAWH (-10 points), NBP (-10 points) and OGDC (-9 points).
-
Stocks shed 226 points on concerns over inflationary pressure
KARACHI: The stock market fell by 226 points on Monday owing to concerns of inflationary pressure and rise rupee/dollar parity.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 48,013 points as against last Friday’s closing of 48,239 points, showing a decline of 226 points.
Analysts at Arif Habib Limited said that the market traded in a narrow range between +132 points and -275 points, closing the session -226 points.
Uncertainty prevailed during the session due to concerns over increase in oil prices giving rise to inflation as well as the increase in Rupee : Dollar parity which caused the investors to take a cautious approach.
Despite increase in cement price / bag in the outgoing week, Cement and Steel sector stocks were down. Though oil prices have maintained stable ground, E&P sector remained under selling pressure. Among scrips, SILK topped the volumes with 235.1 million shares, followed by HUMNL (60.3 million) and WTL (58.4 million).
Sectors contributing to the performance include Cement (-64 points), Banks (-3 points), Chemical (-25 points), Fertilizer -24 points), O&GMCs (-20 points).
Volumes increased from 750.5 million shares to 839.2 million shares (+12 percent DoD). Average traded value declined by 23 percent to reach US$ 100.8 million as against US$ 131.2 million.
Stocks that contributed significantly to the volumes include SILK, HUMNL, WTL, PIBTL and FFL, which formed 53 percent of total volumes.
Stocks that contributed positively to the index include SYS (+19 points), FCEPL (+12 points), MEBL (+6 points), SNGP (+6 points) and HUBC (+6 points). Stocks that contributed negatively include LUCK (-33 points), PSO (-22 points), MCB (-20 points), COLG (-15 points) and ENGRO (-14 points).
-
Weekly Review: stocks to make gain on expected FATF positive outcome
KARACHI: The stock market is likely to regain positive momentum next week on the expected exit of Pakistan from the grey list of Financial Action Task Force (FATF).
Analysts at Arif Habib Limited said that the market to regain positive momentum in the coming week. With FATF’s Plenary Session to be held on 21st June 2021, the index is expected to bounce back as an exit from the grey list seems imminent.
Furthermore, on COVID-19 front, infection ratio has dropped to 1.91 percent (which is an 8 month low).
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.9x (2021) compared to Asia Pac regional average of 16.5x while offering a dividend yield of ~6.8 percent versus ~2.6 percent offered by the region.
The market commenced on a positive note this week given a set of relief measures announced in the Budget such as a decline in capital gain tax to 12.5 percent from 15 percent tagged with positive measures for refineries, auto sector and information technology sector.
Moreover, the government increased dividend expectations from OGDC and PPL (Rs17.50/share and Rs8.25/share, respectively) which kept these scrips in the limelight.
However, the market turned red later in the week as the investors resorted to profit-taking. Furthermore, a deadlock between the IMF and the government persisted which further stressed sentiment. Albeit, the market settled at 48,239 points, shedding 66 points (down by 0.14 percent) WoW.
Sector-wise negative contributions came from i) Commercial Banks (176 points) ii) Fertilizer (88 points), iii) Food & Personal Care Products (52 points), iv) Automobile Assembler (34 points) and v) Miscellaneous (31 points). Whereas, the sectors that contributed positively include Oil & Gas Exploration Companies (156 points), Cement (74 points), Power Generation & Distribution (31 points), Engineering (30 points) and Tobacco (25 points). Scrip-wise negative contributors were HBL (88 points), UNITY (56 points), TRG (47 points), UBL (40 points) and EFERT (34 points). Scrip-wise positive contributors were OGDC (99 points), POL (64 points), HUBC (46 points), LUCK (36 points) and SYS (28 points).
Foreign selling continued this week clocking-in at USD 6.8 million compared to a net buy of USD 7.5 million last week. Selling was witnessed in Commercial Banks (USD 2.5 million) and Technology (USD 2.5 million). On the domestic front, major buying was reported by Individuals (USD 21.4 million and Mutual Funds (USD 10.9 million). Average volumes arrived at 1,049 million shares (down by 3 percent WoW) while average value traded settled at USD 170 million (up by 6 percent WoW).
-
Beverage Cans plans to raise Rs3.3 billion in Initial Public Offering
KARACHI: Pakistan Aluminium Beverage Cans Ltd (PABC) is planning to raise at least Rs 3.3 billion by offering a 26 per cent stake to institutional and ordinary investors in an initial public offer (IPO) on the Pakistan Stock Exchange (PSX).
Book building will take place on June 22 and 23, followed by public subscription on June 29 and 30, a statement said on Friday.
The entire offer of 93.8 million ordinary shares, or 26 per cent of the post-IPO shareholding, will be offered through the book-building process at a floor price of Rs35 per share. Successful bidders will be provisionally allotted only 75 per cent of the issue size and the remaining shares will be offered to the retail investors at the strike price.
It means PABC will raise at least Rs3.3 billion in the IPO. But based on the interest from investors during the book building process, the strike price can rise by 40 percent (Rs49 a share), thus helping the company collect Rs4.6 billion.
Ashmore Mauritius PABC Ltd, a specialist emerging markets investment manager based in Mauritius, currently holds 51 per cent shareholding in the company while Liberty Group, a leading player in textile and power sectors, owns the remaining 49 per cent stake. With the exit of Ashmore post-IPO, Liberty Group, general public and Soorty Enterprises will own 54 per cent, 26 per cent and 20 per cent shareholding in the company.
The company started its operations in 2017 as the country’s only local manufacturer of aluminum beverage cans. Until then, bottlers in Pakistan and Afghanistan relied on expensive imports to package their beverages in environment-friendly aluminum cans.
PABC supplies to the bottlers of all major carbonated drinks, including PepsiCo and Coca-Cola, in both Pakistan and Afghanistan. Exports to Afghanistan constituted 35 per cent of the company’s sales in calendar year 2020.
Established on a 20.9-acre piece of land in Faisalabad’s Special Economic Zone with a current rated capacity of 700 million cans per annum, PABC continues to enjoy a 10-year tax holiday. The company is increasing its rated capacity by almost 36 per cent to 950 million cans per annum by July next year.
It has grown its revenue at an annualised rate of 18.7 per cent in the last five years. In the third full year of its operation (2020), the company’s net profit amounted to Rs610.7 million, up 314 per cent from 2019. It expects its bottom line to grow at 140 per cent in 2021.
Euromonitor International puts the size of Pakistan’s soft drinks market at 3.8 billion litres per annum. It expects the market to grow at a five-year annualised rate of seven per cent to reach 5.3 billion litres in 2025 on the back of rising purchasing power, urbanisation and favorable demographics.
With the estimated market size of 275 million cans, aluminium beverage cans in Pakistan account for only 3.6 per cent of total soft drinks sales as opposed to the global average of 19 per cent.
Growing can penetration may increase their sales to 650 million cans by 2025, delivering an annualised growth rate of 19 per year. PABC will be its key beneficiary as the can imports are virtually non-existent due to high freight costs and duties.
PBAC’s biggest export market is Afghanistan as the country does not have local beverage glass manufacturing facilities. It commands over 50 per cent market share, thanks to its contracts with key beverage bottlers, including franchisees of Coca-Cola and Pepsi, in Afghanistan.
In addition, PBAC recently signed agreements and initiated exports to leading beverage players in the United States. North America accounts for more than one-third of the global consumption of aluminium cans mainly because of the environmental concerns. The company is also in discussion with key beverage bottlers in Bangladesh and Iraq.
-
Stocks gain 81 points in narrow range trading
KARACHI: The stock market gained 81 points on Friday while trading in narrow range trading activity during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 48,239 points as against previous day’s close of 48,158 points, showing an increase of 81 points.
Analysts at Arif Habib Limited said that the market traded in a narrow range between -135 points and +254 points, closing the session +81 points.
Refineries, Cement, Fertilizer, O&GMCs and Technology sector inched up, which helped index trade in the positive territory.
Concerns of redemption with some mutual funds maintained selling pressure.
Among scrips, HUMNL led the volumes with 88.1 million shares, followed by WTL (76.4 million) and BYCO (70.7 million).
Sectors contributing to the performance include Banks (77 points), Vanaspati (-12 points), Cement (+58 points), Refinery (+39pst), Technology (+19 points).
Volumes declined from 1117.4 million shares to 750.6 million shares (-33 percent DoD). On the contrary, Average traded value increased by 5 percent to reach US$ 131.8 million as against US$ 124.9 million.
Stocks that contributed significantly to the volumes include HUMNL, WTL, BYCO, UNITY and SILK, which formed 44 percent of total volumes.
Stocks that contributed positively to the index include LUCK (+31 points), NRL (+20 points), POL (+20 points), TRG (+19 points) and FFC (+14 points).
Stocks that contributed negatively include HBL (-63 points), MTL (-15 points), OGDC (-14 points), MCB (-13 points) and UNITY (-12 points).
-
Stocks tumble on persistent selling pressure
KARACHI: The stock market tumbled on Thursday as selling pressure continued during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 48,158 points as against previous day’s closing of 48,481 points, showing a decline of 323 points.
Analysts at Arif Habib Limited said that the market tumbled again today with a drop of 365 points during the session and closing -323 points.
Refineries, O&GMCs, Cement, Engineering, Banks, Fertilizer and Technology stocks saw persistent selling pressure despite budget incentives announced last Friday.
E&P companies were relatively unscathed on the back of stable oil prices, which hovered around US$ 74/bbl. Among scrips, WTL topped the volumes with 243 million shares, followed by SILK (187.6 million) and KEL (57.4 million).
Sectors contributing to the performance include Banks (-62 points), Power (-44 points), O&GMCs (-34 points), Technology (-29 points) and Refinery (-28 points).
Volumes increased from 936.6 million shares to 1117.4 million shares (+19 percent DoD). Average traded value declined by 13 percent to reach US$ 125.1 million as against US$ 142.9 million.
Stocks that contributed significantly to the volumes include WTL, SILK, KEL, BYCO and HUMNL, which formed 50 percent of total volumes.
Stocks that contributed positively to the index include POL (+14 points), OGDC (+10 points), PSX (+10 points), FCEPL (+9 points) and LUCK (+6 points). Stocks that contributed negatively include HUBC (-31 points), TRG (-28 points), HBL (-26 points), UNITY (-24 points) and PSEL (-15 points).
-
Stock market ends down by 152 points on selling pressure
KARACHI: The stock market ended down by 152 points on Wednesday amid selling pressure witnessed during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 48,481 points as against previous day’s closing of 48,633 points, showing a decline of 152 points.
Analysts at Arif Habib Limited said that the market saw persistent selling pressure that was felt across the board and made the index trade between -201 points and +246 points, closing the session -152 points.
Among E&P, OGDC and PPL both traded below LDCP against POL, which showed price uptick. Cement sector also traded in a narrow range. Although KEL & WTL retained top slot, volumes remained relatively low. Among scrips, KEL realized 114.9 million shares in trading, followed by WTL (86.4 million) and BYCO (63 million).
Sectors contributing to the performance include Textile (+25 points), Cement (-54 points), Banks (-33 points), Chemical (-24 points), Fertilizer (-17 points) and Pharma (-16 points).
Volumes declined from 1224.5 million shares to 936.7 million shares (-24 percent DoD). Average traded value also declined by 21 percent to reach US$ 142.7 million as against US$ 179.8 million.
Stocks that contributed significantly to the volumes include KEL, WTL, BYCO, HASCOL and GGGL, which formed 38 percent of total volumes.
Stocks that contributed positively to the index include HUBC (+27 points), PAKT (+17 points), POL (+16 points), KTML (+16 points) and SRVI (+9 points). Stocks that contributed negatively include ENGRO (-21 points), PPL (-17 points), COLG (-15 points), KEL (-14 points) and DGKC (-14 points).
-
Stock market ends down in range bound trading
KARACHI: The stock market ended down by 94 points on Tuesday while trading in range bound on account of profit booking.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 48,633 points as against previous day’s closing of 48,726 points, showing decline of 94 points.
Analysts at Arif Habib Limited said that the market traded range bound today on account of profit booking particularly in refinery, steel, cement and E&P sectors.
Index oscillated between -215 points and +115 points, closing the session -94 points. Technology sector failed to bounce back in the past sessions and similar downtrend was witnessed today.
E&P sector saw prominence of OGDC on the back of anticipated dividend payout, whereas Fertilizer sector remained under pressure after less than anticipated takeaways from the recently announced budget.
Among scrips, KEL topped the volumes with 312.9 million shares, followed by WTL (147.6 million) and BYCO (129.3 million).
Sectors contributing to the performance include Power (+80 points), Chemical (+12 points), Banks (-46 points), E&P (-45 points), Refinery (-24 points).
Volumes increased from 1217.8 million shares to 1224.6 million shares (+0.5 percent DoD). Average traded value declined by 34 percent to reach US$ 180.7 million as against US$ 274.4 million.
Stocks that contributed significantly to the volumes include KEL, WTL, BYCO, HASCOL and POWER, which formed 55 percent of total volumes.
Stocks that contributed positively to the index include HUBC (+52 points), KEL (+29 points), TRG (+28 points), FFC (+18 points) and PSO (+11 points). Stocks that contributed negatively include PPL (-32 points), LUCK (-21 points), SYS (-18 points), ENGRO (-17 points) and EFERT (-15 points).