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Tag: PSX

  • Weekly Review: stock market likely witness mixed trend

    Weekly Review: stock market likely witness mixed trend

    KARACHI: The stock market likely to witness mixed trading activities during next week owing to grey list status of Pakistan and budget incentives.

    Analysts at Arif Habib Limited said that the market to depict a mixed to positive trend in the upcoming week attributable to: FATF’s announcement to keep Pakistan on Grey List; and sectors that got major relief in the budget will remain in the limelight.

    On the other hand, E&P scrips are expected to continue performing well due to higher international oil prices and government shelving divestment plan of OGDC and PPL and also deferring divestment of government shares in MARI.

    However, a Current Account Deficit of USD 632 million for May’21 and uptick in CPI in the upcoming months, may dampen investors sentiments.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.8x (2021) compared to Asia Pac regional average of 16.5x while offering a dividend yield of ~6.9 per cent versus ~2.3 per cent offered by the region.

    This week trading commenced on a negative note with the index shedding 226 points on Monday amid economic uncertainty given surge in international oil price along with deprecation of the rupee might which is expected to push up inflationary readings in upcoming months.

    Pessimism at the bourse was further fueled by i) Unavailability of gas to non-export related industries, ii) Petrol shortage at many fuel stations in Pakistan as oil tankers go on a countrywide strike which might affect business of exporters, iii) proposal for reclassification of Pakistan from MSCI Emerging Market to Frontier Market, and iv) Uncertainty over the FATF plenary outcome led to profit taking by investors. The KSE-100 index closed at 47,603 points, down by 635 points or 1.32 per cent WoW.

    Contribution to the downside was led by i) Cements (212 points), ii) Commercial Banks (178 points), iii) Oil and Gas Exploration Companies (58 points), iv) Pharmaceuticals (53 points), and v) Oil and Gas Marketing Companies (51 points). Scrip-wise major losers were LUCK (118 points), TRG (62 points), MCB (60 points), PSO (45 points), and HBL (44 points). Whereas, scrip-wise major gainers were SYS (67 points), FCEPL (43 points), HUBC (38 points), ANL (34 points) and MTL (21 points).

    Foreigners offloaded stocks worth of USD 7.88 million compared to a net sell of USD 6.76 million last week. Major selling was witnessed in All other sectors (USD 7.42 million) and Commercial Banks (USD 1.94 million). On the local front, buying was reported by Individuals (USD 13.71 million) followed by Banks (USD 12.86 million). That said, average daily volumes and traded value for the outgoing week were down by 34 per cent and 35 per cent to 694 million shares and USD 112 million, respectively.

  • Stocks end down by 359 points amid selling pressure

    Stocks end down by 359 points amid selling pressure

    KARACHI: The stock market witnessed a decline of 359 points on Friday as across the board selling pressure observed during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 47,604 points as against previous day’s close of 47,963 points, showing a decline of 359 points.

    Analysts at Arif Habib Limited said that the rollover week ended with market shedding 486 points during the session and closing the index -359 points.

    Overnight intimation from MSCI regarding possible downgrade of Pakistan from MSCI Emerging Market Index to MSCI Frontier market Index, had investors perplexed on the upgrade of stocks in the recent MSCI review particularly LUCK and TRG, which were added to the Standard and Small index respectively.

    In addition, Finance Minister’s final budget speech had positive surprise for auto stocks.

    Selling pressure was observed across the board, with concentration towards Banks, E&P and Cement sector stocks. Among scrips, WTL topped the volumes with 142 million shares, followed by BYCO (53.7 million) and PACE (44.9 million).

    Sectors contributing to the performance include Banks (-114 points), Cement (-101 points), E&P (-63 points), Pharma (-40 points) and Inv Banks (-28 points).

    Volumes increased from 638.8 million shares to 761.3 million shares (+19 per cent DoD). Average traded value also increased by 32 per cent to reach US$ 138.0 million as against US$ 103.8 million.

    Stocks that contributed significantly to the volumes include WTL, BYCO, PACE, TPL and KEL, which formed 39 per cent of total volumes.

    Stocks that contributed positively to the index include PSEL (+29 points), FCEPL (+14 points), SYS (+12 points), ANL (+7 points) and HUBC (+7 points). Stocks that contributed negatively include LUCK (-66 points), HBL (-50 points), UBL (-36 points), PPL (-20 points) and DAWH (-19 points).

  • Investors allowed carry forward capital losses on disposal of securities

    Investors allowed carry forward capital losses on disposal of securities

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday allowed investors of Pakistan Stock Exchange (PSX) to carry forward capital losses for calculation of capital gain tax.

    In this regard the FBR issued SRO 801(I)/2021 to make amendment in the Income Tax Rules, 2002.

    The FBR previously issued draft rules through SRO 639(I)/2021 dated June 01, 2021 for seeking feedback from stakeholders.

    As per the SRO a substitution in sub-rule (3) of Rule 13D of the Income Tax Rules, 2002 has been made. According to the amendment:

    (3) Capital loss arising on disposal of listed securities in tax year 2019 and onwards that has not been set off against the gain of the person from disposal of listed securities chargeable to tax during the tax year shall be carried forward to the following tax year and set off only against the gain of the person from disposal of listed securities chargeable to tax but no such loss shall be carried forward to more than three tax years immediately succeeding the tax year for which the loss was first determined.

    In Rule 13N, the substitution in sub-rule (7), as:

    (7) Capital loss arising on disposal of listed securities in tax year 2019 and onwards that has not been set off against the gain of the person from disposal of listed securities chargeable to tax during the tax year shall be carried forward to the following tax year and set off only against the gain of the person from disposal of listed securities chargeable to tax but no such loss shall be carried forward to more than three tax years immediately succeeding the tax year for which the loss was first determined.

    A new sub-rule after the sub-rule 7 has been inserted, which is:

    (7A) Capital loss arising on disposal of listed securities in tax year 2019 and onward shall be carried forward to a subsequent tax year for setting off, in the manner prescribed as follow:

    (a) The setting off of eligible capital loss carried forward from previous tax year(s) shall be made by National Clearing Company of Pakistan Limited (NCCPL) under this rule, only in respect of a taxpayer whose name appear or appeared in the Active Taxpayers List (ATL) pertaining to the tax year to which such loss pertains as witnessed by the ATL available on FBR’s website after updation for the tax year to which such loss pertains;

    (b) adjustment of carried forward capital loss(es) shall be made on monthly basis by the NCCPL from the first month of updation of ATL for the tax year and on first-in first-out (FIFO) basis;

    (c) The NCCPL may requisition date wise position of ATL in respect of particular taxpayer from Information Technology (IT) Wing of the FBR as and when required;

    (d) At the end of relevant tax year, NCCPL shall maintain tax year-wise balance of unexpired carried forward capital losses separately identifiable for computation of limitation period for each ta year; and

     (e) The manner of adjustment of capital loss carried forward from previous tax years will be in accordance with illustration given in clause (zf) of Rule 13P.

  • KSE-100 index gains 62 points in narrow range trading

    KSE-100 index gains 62 points in narrow range trading

    KARACHI: The Pakistan Stock Exchange (PSX) witnessed a modest upswing on Thursday, with the benchmark KSE-100 index gaining 62 points in a day marked by narrow range trading.

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  • Stocks end down by 86 points on selling pressure

    Stocks end down by 86 points on selling pressure

    KARACHI: The Pakistan stocks experienced a modest decline on Wednesday, closing down by 86 points amid a day characterized by range-bound trading activity.

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  • Stocks end flat in range bound trading

    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

    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

    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

    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

    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).