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Tag: Pakistan Stock Exchange

  • KSE-100 index falls by 518 points on upcoming MSCI review

    KSE-100 index falls by 518 points on upcoming MSCI review

    KARACHI: The stock exchange fell by 518 points on Monday owing to upcoming MSCI review and reports of tax laden budget.

    The benchmark KSE-100 index of Pakistan Stock Exchange closed at 35,605 points as against 36,123 points showing a decline of 518 points.

    Market continued negative drive today amidst issues like MSCI review on May 13th, impending tough budget, possibility of policy rate hike by SBP by month end and pending IMF package.

    Volumes were driven by Cement Sector that couldn’t find solution of sales quota and declining sales volume.

    Market volumes have been anemic since last week, which was the case even today. All shares index registered a volume of 71M shares, with Cement Sector leading the index (14.7M shares), followed by Banks (11.7M) and Engineering (6M).

    Steel scrips traded at and close to lower circuit. Among scrips, MLCF topped the chart with 6.4M shares followed by BOP (5.7M). market closed near day’s low of 553 points.

    Sectors contributing to the performance include E&P (-117 points), Banks (-99 points), Cement (-72 points), Fertilizer (-71 points) and Power (-51 points).

    Volumes improved slightly from 64mn shares to 71mn shares (11 percent DoD). Average traded value also increased by 8 percent to reach US$ 22.4mn as against US$ 20.65mn.

    Stocks that contributed significantly to the volumes include MLCF, BOP, UNITY, FCCL and UBL, which formed 31 percent of total volumes.

    Stocks that contributed positively include COLG (+12 points), BAFL (+8 points), AGIL (+4 points) and DAWH (+4 points). Stocks that contributed negatively include PPL (-58 points), LUCK (-44 points), ENGRO (-42 points), UBL (-37 points) and HUBC (-32 points).

  • PSX proposes reducing withholding tax to 2.5pc on income from margin financing transactions

    PSX proposes reducing withholding tax to 2.5pc on income from margin financing transactions

    KARACHI: Pakistan Stock Exchange (PSX) has recommended the tax authorities to reduce the withholding tax to 2.5 percent from 10 percent to develop the market and increase tax collection.

    In its budget proposals for 2019/2020, the stock market said that the proposed reduction in the rate of tax on margin financing transactions would help develop market and increase tax collection by Federal Board of Revenue (FBR) because 10 years back the size of similar market for margin transactions was several time higher.

    The PSX said that margin financing facility is made available to all members against net ready market purchases of their clients and proprietary positions.

    The National Clearing Company of Pakistan Limited (NCCPL) provides a system to margin financing participants for recording and settlement of margin financing transactions, with financing terms and conditions pre-determined by the margin financee and margin financier.

    Margin financing facility is made available only in eligible securities notified by the Securities and Exchange Commission of Pakistan (SECP).

    The PSX said that the present tax rate on gross income of the financier is 10 percent without deduction of any expenditure to earn such income.

    In most cases the funds are borrowed from financial institutions for such margin financing transactions, it added.

    The cost involved in margin financing includes financing cost payable to financial institution, trading, clearing and depository charges and other administrative cost which render that the amount deducted as advance tax could not be fully adjusted against the tax liability of most brokers leading towards claims for tax refunds that are not time bound.

    For the purpose of reducing withholding tax, the PSX proposed amendment to Division IIB of Part IV, First Schedule to Income Tax Ordinance, 2001 as: “The rate of deduction under section 233A shall be 2.5 percent of profit or mark-up or interest earned by the member, margin financier or securities lender.”

  • Market Review: IMF loan program to move trading pattern

    Market Review: IMF loan program to move trading pattern

    KARACHI: The staff level agreement of the IMF program is expected to restore confidence of the market, analysts said on Saturday.

    Volumes usually dry out in the month of Ramzan given shorter trading hours. Albeit, with budgetary proposals following in, we believe certain sectors / scrips may come under limelight.

    Analysts said that while the outgoing quarter remained positively surprising with sectors such as Commercial Banks, Cements, and Chemicals unveiling above street consensus result outcomes, investors continued to remain wary owing to persisting economic despondency.

    This has contributed to ambiguity over future corporate earnings growth, and coupled with a lack of clarity over the finalization of the IMF program, the KSE-100 index has continued to remain under pressure. This week the bourse ended at 36,123 points, shedding 1,008 points (down by 2.7 percent) WoW.

    Negative sector-wise contributions came from i) Oil & Gas Exploration Companies (308 points) amid fall in international oil prices, ii) Commercial Banks (171 points), iii) Fertilizers (148 points), iv) Power Generation & Distribution (89 points) and Oil & Gas Mareting Companies (70 points). On the flip side, sectors that contributed positively include i) Tobacco (27 points) and ii) Insurance (5 points).

    Scrip-wise negative contribution came from PPL (125 points), OGDC (90 points), POL (78 points) and HBL (73 points). Whereas, positive scrip-wise contributions came from PSMC (24 points), PMPK (20 points), HMB (12 points) and PAKT (7 points).

    Foreign buying continued this week clocking-in at USD 4.8mn compared to a net buy of USD 9.3mn last week. Buying was witnessed in Cements (USD 3.9mn) and Commercial Banks (USD 2.0mn). On the domestic front, major selling was reported by Mutual Funds (USD 13.4mn) and Broker Proprietary Trading (USD 0.6mn). Volumes settled at 105mn shares (down by 14 percent WoW) while value traded clocked in at USD 29mn (down by 13 percent WoW).

    Other major news: i) Cabinet committees dealing with economic matters reconstituted, ii) FTA Phase-II signed with China, iii) Rs14.38 per litre increase in petrol price recommended by Ogra, iv) Talks on $8 billion bailout: Government, IMF in final round, v) CPI-based inflation recorded at 8.8 percent in April on YoY basis, and vi) Foreign exchange: SBP reserves dip 2.4 percent to stand at $8.8 billion.

  • Equity market plunges by 425 points on selling

    Equity market plunges by 425 points on selling

    KARACHI: The equity market plunged by 425 points on Friday owing to across the board selling.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,122 points as against 36,547 points showing a decline of 425 points.

    Analysts at Arif Habib Limited said that the market opened on a negative note with -3 points and a dull outlook.

    After a negligible move of +9 points, the index continued down trodding and by end of first session, the market was down 315 points with a paltry 26 million shares in trading volume.

    Second session saw further attrition and the index slid by a total of 476 points and ended -425 points.

    Selling was observed across the board and contributed by mainly Banks and E&P sectors. Declining international crude prices caused the onslaught of E&P scrips, with OGDC regressing 1.8 percent with a volume of 2.4 million shares. Amongst Cement sector, FCCL and MLCF contributed in top 10 stocks.

    Sectors contributing to the performance include E&P (-128 points), Banks (-95 points), Fertilizer (-60 points), O&GMCs (-30 points), Cement (-24 points).

    Volumes remained low at 64 million shares as against 68 million shares yesterday (-5 percent DoD).

    Average traded value on the contrary increased by 18 percent to reach US$ 20.7 million as against US$ 17.5 million.

    Stocks that contributed significantly to the volumes include UNITY, FCCL, BOP, LOTCHEM and OGDC, which formed 32 percent of total volumes.

    Stocks that contributed positively include BAHL (+13 points), PSMC (+6 points), COLG (+6 points), IGIHL (+5 points), and NATF (+4 points). Stocks that contributed negatively include HBL (-57 points), PPL (-55 points), POL (-37 points), OGDC (-33 points) and ENGRO (-29 points).

  • Stock market ends down by 237 points on IMF talks

    Stock market ends down by 237 points on IMF talks

    KARACHI: The stock market ended down by 237 points on Thursday as bearish trend prevailed over IMF talks and forthcoming budget.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,548 points as against 36,784 points showing a decline of 237 points.

    Analysts at Arif Habib Limited said that the market remained under pressure after an initial increase of 73 points.

    During the session, the benchmark index saw erosion of 237 points, mostly caused by the cement sector due to rumors of no agreement amongst the cement manufacturers on sales quota.

    On the other hand, tough asks from IMF and expectations of tougher budget by the end of May maintained an overall bearish sentiment.

    Total market volumes dropped drastically as well to 68 million shares as against 111 million traded in the previous session. Besides cements, the food sector also traded in the red zone.

    Sectors contributing to the performance include Commercial Banks (-54 points), Food & Personal Care (-38 points), Power Generation (-36 points), OGMCs (-26 points), Chemicals (-12 points), Real Estate (+2 points) and Pharma (+2 points).

    Volumes decreased from 68 million shares to 111 million shares (-39 percent DoD). Average traded value also decreased by 46 percent to reach US$ 17.5 million as against US$ 32.6 million.

    Stocks that contributed significantly to the volumes include UNITY, FFL, MLCF, PIAA and LOTCHEM which formed 45 percent of total volumes.

    Stocks that contributed positively include ENGRO (+8 points), PSMC (+6 points), KTML (+6 points), PPL (+5 points), and SPWL (+4 points). Stocks that contributed negatively include NESTLE (-37 points), HUBC (-32 points), HBL (-18 points), PSO (-16 points) and MEBL (-12 points).

  • KSE-100 falls by 242 points on concerns over economy in IMF program

    KSE-100 falls by 242 points on concerns over economy in IMF program

    KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) fell by 242 points on Tuesday due to concerns over economic condition in post IMF program.

    The share market closed at 36,784 points as against 37,026 points showing a decline of 242 points.

    Analyst at Next Capital Limited said that the stock market plunged amid growing concerns on economy post IMF program and concerns over additional taxes to be implemented in the upcoming budget.

    As per news reports, Pakistan and IMF have launched the final round of talks over the $8 billion bailout package for Islamabad, a deal that’s expected to be signed next month.

    The round started on Monday in the capital and is expected to last till May 7.

    Market participation for the 100 index decreased to 82.5 million shares from 132.4 million shares in the previous session (-37.7 percent on d/d basis).

    Major contribution to total market volume came from UNITY, PAEL, and BOP churning 28.0 million shares out of the total market volume of 110.6 million shares.

    Daily traded value for the 100 index decreased to USD28.2 million from USD38.2 million in the previous session.

    Analysts at Topline Securities said that the index extended losses for the second consecutive day as investors remained wary on upcoming events like Budget and Amnesty Scheme.

    Further, IMF technical team is also in town till May 07, which is likely to dictate key revenue measures for upcoming federal budget.

    Consequently, index lost 0.65 percent today, closing at 36,784.

    During the outgoing month, Index lost 4.8 percent – worst April month in last 14 years.

    E&Ps, Cements, and Banking sector remained top laggards with deletion of 887 points from the index.

    Investors sentiments in E&Ps were affected after offshore drilling hit a snag, while cement sector remained under pressure due to slippage in cement prices as difference of opinion still prevails among manufacturers over uniform pricing.

    Volumetric activity witnessed rise of 33 percent MoM, similarly value was up 9 percent MoM.

  • Equity market ends down by 104 points on panic selling

    Equity market ends down by 104 points on panic selling

    KARACHI: The equity market ended down by 104 points on Monday owing to panic selling.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,026 points as against 37,130 points showing a decline of 104 points.

    Analysts at Arif Habib Limited said that the market commenced on a positive note today and continued the rally that took place last week.

    During the session, the index increased by 307 points that was caused by Cement sector stocks hitting upper circuit.

    However, rumor regarding failure of negotiation amongst Cement manufacturers caused panic selling by investors, which resulted in index sliding in negative territory and erosion of price gains made earlier.

    Cement Sector topped the volumes with 34 million shares, followed by Banks (24 million).

    Among scrips, PIBTL led the volumes with 14 million shares followed by PAEL (11 million).

    Major sentiment dampener turned out to be E&P sector that saw heavy selling in all the E&P scrips on the back of falling international oil prices.

    Sectors contributing to the performance include Transport (+20 points), Tobacco (+19 points), E&P (-100 points), Fertilizer (-43 points), Power (-9 points), Textile (-8 points) and Cement (-7 points).

    Volumes increased from 144 million shares to 177 million shares (+23 percent DoD).

    Average traded value also increased by 22 percent to reach US$ 44.8 million as against US$ 36.7 million.

    Stocks that contributed significantly to the volumes include PIBTL, PAEL, BOP, FCCL and KEL, which formed 32 percent of total volumes.

    Stocks that contributed positively include PIBTL (+20 points), HBL (+16 points), HMB (+10 points), PMPK (+10 points), and PAKT (+9 points). Stocks that contributed negatively include PPL (-46 points), OGDC (-34 points), POL (-23 points), ENGRO (-19 points) and LUCK (-13 points).

  • PSX recommends aligning CGT on securities with immovable properties

    PSX recommends aligning CGT on securities with immovable properties

    KARACHI: Pakistan Stock Exchange (PSX) has recommended the government to align capital gain tax (CGT) on disposal of securities with the rates of CGT with immovable properties using same slabs of holding periods as those on real estate.

    The PSX in its proposals for budget 2019/2020 said that such proposal would encourage documentation in real estate activity, and lead to an easing of speculative pressure on real estate property prices in Pakistan.

    The PSX said that at present the tax rates on capital gains from the disposal of securities are prescribed using various slabs that denote the holding period of the securities.

    “The tax on these comparable slabs of holding periods of securities is higher than those for immovable property, and not aligned with the CGT on disposal of real estate, and result in making the real estate sector particularly appealing to investors when compared to capital markets.”

    The alignment of these tax rates will also lead to an easing of speculative pressure on real estate property prices in Pakistan, where much of the undocumented wealth has been currently flowing.

    The PSX proposed amendment in Division VII, Part I of the First Schedule to the Income Tax Ordinance, 2001, the following new table shall be interested in place of existing table:

    For securities acquired on or after July 01, 2016

    01. Where holding period of a security is up to on year: 10 percent for filer, 20 percent for non-filer

    02. Where holding period of a security is more than or equal to one year but less than two years: 7.50 percent for filers, 20 percent for non-filers

    03. Where holding period of a security is more than or equal to two years but less than three years: 5 percent for filers, 20 percent for non-filers

    04. Where holding period of a security is more than three years: zero percent for both filers and non-filers

    For securities acquired before July 01, 2016:

    05. Where holding period of a security is up to three years: 5 percent for filers, 20 percent for non-filers

    06. Where holding period of a security is more than three years: zero percent for both filers and non-filers.

    The PSX in its proposals for budget 2019/2020 said that such proposal would encourage documentation in real estate activity, and lead to an easing of speculative pressure on real estate property prices in Pakistan.

    The PSX said that at present the tax rates on capital gains from the disposal of securities are prescribed using various slabs that denote the holding period of the securities.

    “The tax on these comparable slabs of holding periods of securities is higher than those for immovable property, and not aligned with the CGT on disposal of real estate, and result in making the real estate sector particularly appealing to investors when compared to capital markets.”

    The alignment of these tax rates will also lead to an easing of speculative pressure on real estate property prices in Pakistan, where much of the undocumented wealth has been currently flowing.

    The PSX proposed amendment in Division VII, Part I of the First Schedule to the Income Tax Ordinance, 2001, the following new table shall be interested in place of existing table:

    For securities acquired on or after July 01, 2016

    01. Where holding period of a security is up to on year: 10 percent for filer, 20 percent for non-filer

    02. Where holding period of a security is more than or equal to one year but less than two years: 7.50 percent for filers, 20 percent for non-filers

    03. Where holding period of a security is more than or equal to two years but less than three years: 5 percent for filers, 20 percent for non-filers

    04. Where holding period of a security is more than three years: zero percent for both filers and non-filers

    For securities acquired before July 01, 2016:

    05. Where holding period of a security is up to three years: 5 percent for filers, 20 percent for non-filers

    06. Where holding period of a security is more than three years: zero percent for both filers and non-filers.

  • Weekly Review: positive sentiments to prevail in stock market

    Weekly Review: positive sentiments to prevail in stock market

    KARACHI: The stock market is expected to experience positive momentum in the coming week as Prime Minister Imran Khan’s visit to China and the arrival of an International Monetary Fund (IMF) team in Pakistan generate optimism among investors.

    (more…)
  • Equity market gains 335 points amid optimism on IMF loan program

    Equity market gains 335 points amid optimism on IMF loan program

    KARACHI: The equity market gained 335 points on Friday amid optimistic sentiment over IMF loan program.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,130 points as against 36,796 points showing an increase of +335 points.

    Analysts at Arif Habib Limited said that the market increased consecutively with another 362 points during the day and ended the session +335 points.

    Optimism can clearly be seen from market participants, which emanates from likely conclusion of IMF package in the first week of May as well as PM’s visit to China.

    Cement sector performed well on the news of settlement of sales quota amongst cement manufacturers on upcoming meeting coming Monday.

    A host of result announcements also helped prop-up the index. BOP topped the volumes table with 20M shares, followed by PAEL (9 million) and UNITY (7 million).

    Banking sector performed well with 27 million shares, which was followed by Cement Sector (23 million shares).

    Sectors contributing to the performance include Cement (+104 points), Tobacco (+38 points), Power (+34 points), Autos (+28 points) and Fertilizer (+19 points).

    Volumes increased from 106.8 million shares to 146.8 million shares (+35 percent DoD). Average traded value also increased by 23 percent to reach US$ 36.8 million as against US$ 29.8 million.

    Stocks that contributed significantly to the volumes include BOP, PAEL, UNITY, TRG and FCCL, which formed 35 percent of total volumes.

    Stocks that contributed positively include LUCK (+51 points), PAKT (+32 points), DAWH (+23 points), DGKC (+16 points), and FCCL (+16 points). Stocks that contributed negatively include MCB (-16 points), BAHL (-15 points), UBL (-9 points), IGIHL (-6 points) and FFC (-5 points).