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Tag: PSX

  • Share market gains 118 points as auto sector performs

    Share market gains 118 points as auto sector performs

    KARACHI: The share market gained 118 points on Friday as positive sentiments were seen in auto sector. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 48,212 points as against previous day’s closing of 48,094 points, showing an increase of +118 points.

    Analysts at Arif Habib Limited said that the market maintained positive momentum today with auto sector performing to its best and helped maintain bullish trend for the market.

    Auto sector performed on the back of expectation of an increase in the number of auto sales.

    Cement and Steel sector stocks rallied as well, helping put a total of +333 points and closed the session +118 points. E&P, O&GMCs and Fertilizer sector stocks also contributed to the positivity in the Index.

    Technology sector saw NETSOL performing well, whereas other tech stocks bore selling pressure. Among scrips, WTL led the table with 89 million shares, followed by HASCOL (78.7 million) and BYCO (54.3 million).

    Sectors contributing to the performance include Autos (+35 points), O&GMCs (++25 points), E&P (+23 points), Pharma (+23 points) and +14 points).

    Volumes declined from 889.9 million shares as against 867.3 million (-3 percent DoD). Average traded value also declined by 16 percent to reach US$ 171.9 million as against US$ 204.5 million.

    Stocks that contributed significantly to the volumes include WTL, HASCOL, BYCO, FCSC and PTC, which formed 35 percent of total volumes.

    Stocks that contributed positively to the index include UBL (+16 points), GLAXO (+14 points), HCAR (+13 points), HASCOL (+12 points) and PSMC (+12 points). Stocks that contributed negatively include BAHL (-25 points), PSX (-11 points), MEBL (-9 points), KTML (-8 points) and COLG (-7 points).

  • Stock market ends down by 33 points on profit booking

    Stock market ends down by 33 points on profit booking

    KARACHI: The stock market fell by 33 points on Thursday owing to profit booking in major scripts during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 48,094 points as against previous day’s closing of 48,127 points, showing a decline of 33 points.

    Analysts at Arif Habib Limited said that the market traded in the positive zone for most part of the session, however, profit booking in Cement, Banks, Textile and E&P sector brought the index down by 117 points, closing the session -33 points.

    Among O&GMCs, PSO inched up on the expectation of release of funds, whereas Steel sector performed on the possibility of reduction of duties in the upcoming budget. Technology stocks saw activity in TRG and NETSOL.

    Among volume leaders, WTL led with 134.6 million shares, followed by FNEL (48.1 million) and ICIBL (42.4 million).

    Sectors contributing to the performance include Cement (-45 points), Banks (-35 points), Fertilizer (-26 points), Technology (+42 points) and O&GMCs (+19 points).

    Volumes declined from 1,046 million as against 890 million shares (-15 percent DoD). Average traded value however, increased by 14 percent to reach US$ 205 million as against US$ 179 million.

    Stocks that contributed significantly to the volumes include WTL, FNEL, ICIBL, TRG and HUMNL, which formed 32 percent of total volumes.

    Stocks that contributed positively to the index include TRG (+44 points), MEBL (+23 points), PSO(+12 points), INIL (+10 points) and SEARL (+8 points). Stocks that contributed negatively include LUCK (-48 points), BAHL (-17 points), MTL (-16 points), ENGRO (-16 points) and UNITY (-15 points).

  • Stock market eases by 64 points in range bound trading

    Stock market eases by 64 points in range bound trading

    KARACHI: The stock market witnessed a decline of 64 points on Wednesday while trading in range bound trading during the day.

    The Index closed at 48,127 points as against previous day’s closing of 48,191 points, showing a decline of 64 points.

    Analysts at Arif Habib Limited said that the market traded range bound today, oscillating between +95 points and -231 points and closed the session -64 points.

    E&P, Cement, Banks and Fertilizer sector stocks saw profit booking with the exception of KAPCO and PSO, on the back of an expectation of release of payment related to circular debt.

    Persistent increase in coal prices over the past couple of weeks caused an eclipse in cement sector.

    Among scrips, WTL led the table with 202.6 million shares, followed by BYCO (59.1 million) and PTC (36.2 million).

    Sectors contributing to the performance include E&P (-50 points), Cement (-29 points), Banks (-25 points), Technology (-23 points) and Fertilizer (-11 points).

    Volumes declined further from 1,392 million shares to 1,046 million shares (-25 percent DoD). Average traded value also declined by 9 percent to reach US$ 179.5 million as against US$ 197 million.

    Stocks that contributed significantly to the volumes include WTL, BYCO, PTC, UNITY and ANL, which formed 35 percent of total volumes.

    Stocks that contributed positively to the index include KAPCO (+15 points), NBP (+14 points), HCAR (+14 points), SHFA (+13 points) and UNITY (+13 points). Stocks that contributed negatively include HBL (-35 points), OGDC (-21 points), PPL (-10 points), LUCK (-16 points) and TRG (-14 points).

  • KSE-100 index gains 295 points on expectations of supportive budgetary measures

    KSE-100 index gains 295 points on expectations of supportive budgetary measures

    KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gained 295 points on Tuesday on expectations of supportive measures to be announced in upcoming budget 2021/2022.

    The 1ndex closed at 48,191 points as against previous day’s closing of 47,896 points, showing an increase 295 points.

    Analysts at Arif Habib Limited said that the market remained upbeat today in anticipation of budgetary measures, which was further supported by an uptick in international crude prices courtesy of Brent that crossed US$ 70/bbl.

    The index added a total of 341 points during the session.

    O&GMCs and Power sector took turns on the back of release of payments due from the government on account of circular debt, however, no news came to fruition.

    E&P sector contributed to the upside in Index on the back of positivity in crude oil prices, whereas Fertilizer sector added points to the table on budget incentives. Among scrips, WTL topped the volumes with 353.9 million shares, followed by BYCO (94.1 million) and SILK (86.1 million).

    Sectors contributing to the performance include E&P (+83 points), Fertilizer (+57 points), Power (+25 points), Pharma (+23 points) and Textile (+17 points).

    Volumes declined from 1,412 million shares to 1,392 million shares (-2 percent DoD). Average traded value also declined by 5 percent to reach US$ 207.4 million to US$ 197.29 million.

    Stocks that contributed significantly to the volumes include WTL , BYCO, SILK, PTC and PIBTL, which formed 46 percent of total volumes.

    Stocks that contributed positively to the index include ENGRO (+41 points), PPL (+39 points), LUCK (+22 points), HUBC (+22 points) and OGDC (+21 points). Stocks that contributed negatively include MEBL (-13 points), SNGP (-10 points), PSO (-10 points), FCCL (-8 points) and TRG (-8 points).

  • Stock market gains 770 points on positive economic indicators

    Stock market gains 770 points on positive economic indicators

    KARACHI: The stock market gained 770 points on Monday on strong economic indicators including remittances and tax collection.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 47,896 points as against last Friday’s closing of 47,126 points, showing an increase of 770 points.

    Analysts at Arif Habib Limtied said that the market crossed the resistance level of 47,300 points comfortably by adding a total of 853 points during the session and maintained the bullish trend to end the session with an increase of 770 points.

    Factors contributing to the bullish sentiment at the bourse include strong economic numbers from remittances to tax collection and real GDP growth that is anticipated to go north of 4.5 percent.

    Investors have also been expecting positive measures in the upcoming budget, due to be announced June 11th that is likely to keep the sentiment in an upbeat mood.

    Cement sector performed well today on the back of increase in cement price / bag in north region. Among scrips, WTL led the table with 480 million shares, followed by BYCO (94.2 million) and SILK (71.5 million).

    Sectors contributing to the performance include Banks (+98 points), E&P (+96 points), O&GMCs (+53 points), Fertilizer (+39 points) and Autos (+22 points).

    Volumes increased from 959.9 million shares to 1412.3 million shares (+47 percent DoD). Average traded value also increased by 39 percent to reach US$ 207.6 million as against US$ 148 million.

    Stocks that contributed significantly to the volumes include WTL , BYCO, SILK, HUMNL and GGL, which formed 53 percent of total volumes.

    Stocks that contributed positively to the index include DGKC (+45 points), LUCK (+45 points), PSO (+41 points), HBL (+32 points) and OGDC (+31 points). Stocks that contributed negatively include FFC (-9 points), NBP (-5 points), KEL (-4 points), SHFA (-2 points) and GLAXO (-2 points).

  • PSX recommends reduction in withholding tax on margin financing transactions

    PSX recommends reduction in withholding tax on margin financing transactions

    KARACHI: Pakistan Stock Exchange (PSX) has recommended to reduce the rate of withholding tax on the gross income earned on margin financing (MF) transactions from 10 percent to 2.5 percent.

    The PSX in its proposals for budget 2021/2022 said that MF facility is available to all Trading Rights Entitlement Certificate (TREC) holders against net ready market purchases of their clients and proprietary positions.

    NCCPL provides a system to MF participants for recording and settlement of ME 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 SECP. Presently, the rate of tax on gross income of the Financier is 10 percent without deduction of any expenditure to earn such income. Whereas, in most cases the funds are borrowed from financial institutions for such ME transactions.

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

    The PSX proposed to reduce the rate of withholding tax on the gross income earned on MF transactions from 10 percent to 2.5 percent.

    Alternatively, it is proposed to charge 10 percent on the net income (spread) earned on such financing.

    Giving rationale to the proposals, the stock exchange said that reduction in the rate of tax on MF transactions will help develop the market and increase tax collection by Federal Board of Revenue (FBR) because ten years back, the size of similar market for margin transactions was several times higher.

  • Weekly Review: market likely to trade bullish

    Weekly Review: market likely to trade bullish

    KARACHI: The stock market likely to trade bullish during the next week on expectations of relief in the upcoming budget 2021/2022 such as reduction in duties on imported raw material etc.

    Analysts at Arif Habib Limited hoped that the market to remain bullish in the upcoming week amid expectation of relief in the upcoming budget, reduction in duties on imported raw material for construction sector and export oriented sector to spur growth which might keep these sectors in limelight.

    On the other hand, E&Ps scrips are expected to continue performing well due to higher international oil prices and government shelving divestment plan of E&Ps scrips.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 7.0x (2021) compared to Asia Pac regional average of 16.3x while offering a dividend yield of ~6.9 percent versus ~2.6 percent offered by the region.

    The outgoing week trading commenced on a positive note with the index increasing by 182 points on Monday. The uptrend was driven by NAC’s provisional data on GDP growth which is projected at 3.94 percent in FY21. Optimism at the bourse was further fueled by

    i) Current account posting a surplus of USD 773 million in 10MFY21,

    ii) Government cancelling its divestment plan for PPL and OGDC as well as higher oil prices WoW resulting in heavy buying in these scrips,

    iii) MSCI rebalancing on Thursday resulting in foreign buying, and

    iv) Pakistan developing a local COVID-19 vaccine.

    Likewise, technology sector gained traction amid re-rating of sector multiple along with expectation of relief in the upcoming budget resulted in massive activity in the sector.

    With that said, PSX posted a hat-trick this week (record volumes on three consecutive days). The KSE-100 index closed at 47,126 points, up by 1,211 points or 2.64 percent WoW.    

    Sector-wise positive contributions came from i) Commercial Bank (456  points) ii) Oil & Gas Exploration Companies (163  points), iii) Cements (131  points), iv) Technology & Communication (120  points) and v) Fertilizer (89  points). Meanwhile, the sectors that contributed negatively include Tobacco (26  points) and Chemical (17  points). Scrip-wise positive contributors were HBL (174  points), BAHL (103  points), PPL (101  points), SYS (92  points), and OGDC (82  points).

    Foreign buying was witnessed this week arriving at USD 2.1 million against a net sell of USD 49.3 million last week. Buying was witnessed in Cement (USD 23.9 million) and Technology and Communication (USD 9.2 million). On the domestic front, major selling was reported by Individuals (USD 10.2 million) and Mutual Funds (USD 7.4 million). Average volumes arrived at 1,238 million shares (up by 103 percent WoW) while average value traded settled at USD 178 million (up by 30 percent WoW).

  • Stock market gains 336 points on improved GDP growth forecast

    Stock market gains 336 points on improved GDP growth forecast

    KARACHI: The stock market gained 336 points on Friday owing to investor sentiments after improved GDP growth forecast. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 47,126 points as against previous day’s closing of 46,791 points, showing an increase of 336 points.

    Market showed consistent performance today with a further increase of 456 points and closing the session +356 points. E&P, O&GMCs, Banks and Fertilizer sector stocks well today even after major sell-off of E&P sector stocks yesterday in MSCI rebalancing. Cement and Steel sector stocks didn’t contribute much to the index today.

    Macro news flow on Pakistan’s green bond as well as improved real GDP estimates helped lifting investor sentiment, which was further supplemented by inching up of international crude oil prices.

    Among scrips, WTL realized trading volumes of 380.4 million shares, followed by SILK (56.3 million) and BYCO (38.7 million).

    Sectors contributing to the performance include Banks (+98 points), E&P (+96 points), O&GMCs (+53 points), Fertilizer (+39 points) and Autos (+22 points).

    Volumes declined from 2,220 million shares to 959.9 million shares (-57 percent DoD). Average traded value also declined by 47 percent to reach US$ 148.0 million as against US$ 277.4 million.

    Stocks that contributed significantly to the volumes include WTL, SILK, BBYCO, HUMNL and NRSL, which formed 56 percent of total volumes.

    Stocks that contributed positively to the index include BAHL (+47 points), SYS (+46 points), PPL (+46 points), HBL (+39 points) and OGDC (+35 points). Stocks that contributed negatively include TRG (-48 points), AICL (-11 points), DGKC (-8 points), COLG (-7 points) and SEARL (-5 points).

  • Stock exchange recommends 20 percent tax credit for listed companies

    Stock exchange recommends 20 percent tax credit for listed companies

    KARACHI: Pakistan Stock Exchange (PSX) has recommended a 20 percent tax credit should be granted to listed companies in order to encourage documentation of the economy.

    In its proposals for budget 2021/2022, the PSX said that it is generally observed that when companies opt for a listing on a stock exchange, their profits grow substantially due to effective corporate governance, better disclosures, and ability to raise capital from the market.

    Increased number of listed companies and higher profitability leads to higher tax revenue for the government, including incremental revenues from capital gain tax (CGT).

    Hence it is important to encourage companies to get listed on PSX.

    However, tax credit on enlistment under section 65C has been withdrawn through Second Amendment Act, 2021.

    This tax incentive was a very small carrot with no significant revenue impact.

    Presently, only 10 listed companies are availing this tax credit which we estimate, based on their latest audited financial statements, has a tax revenue impact of Rs. 175 million per annum. Out of these 10 companies, 4 companies are in their 4th or last year of this benefit and 4 companies have recently listed in the current financial year, the PSX said.

    In fact, the tax revenue benefit in the medium term is very large as the documentation of the corporate sector increases and hence tax revenue of Pakistan.

    Further, the CGT collected on these 10 symbols for the 8 months period from July 2020 to February 2021 is Rs.176 million, and, extrapolating based on this 8 months average collection of CGT, the tax collection for the 12 months period could be Rs.264 million, compared to the total estimated tax credits of Rs.175 million availed by these 10 companies.

    The average rate of tax in the Asian region is 21.32 percent; whereas, currently in Pakistan the corporate tax rate is 29 percent.

    As such it is imperative that the corporate tax rate after the tax credit is brought down reasonably to compete with the other regional and global countries.

    Therefore, in order to encourage documentation and create a long term positive impact on tax revenue, there should be reduced rates of tax for listed companies compared to unlisted companies.

    The PSX proposed that to encourage documentation of the economy, the corporate tax rate should be permanently lowered for listed companies, by giving tax credit of 20 percent of tax payable for those companies that meet the prescribed requirements including a minimum free float of 25 percent throughout.

    This will be long term positive for tax revenue.

  • PSX makes all time high volumes of 2.22bn shares as KSE-100 falls by 22 points

    PSX makes all time high volumes of 2.22bn shares as KSE-100 falls by 22 points

    KARACHI: The benchmark index KSE-100 index of Pakistan Stock Exchange (PSX) fell by 22 points on Thursday as the market recorded all time high volumes of 2.22 billion shares in a single day.

    The Index closed at 46,791 points as against 46,812 points showing a decline of 22 points.

    Analysts at Arif Habib Limited said that MSCI rebalancing created excitement today in the market with heavy flows in OGDC, LUCK and TRG which were the key subjects in the changes announced earlier during the month.

    Besides, WTL repeated the performance shown yesterday being the volume leader consecutively and helping the market realize total trading volumes of 2217 million shares, the highest ever after posting 1560 million shares yesterday.

    Since MSCI orders were mostly MoC, last half an hour caused the index to trade red with a decline of 137 points.

    Banking sector kept the index green for most part of the session, with particular interest in HBL and UBL. Among scrips, WTL topped the volumes with 950.1 million shares, followed by HUMNL (172.4 million) and SILK (126.3 million).

    Sectors contributing to the performance include Technology (+46p points), Inv Banks (+23 points), Fertilizer (-29 points), Tobacco (-21 points), Autos (-19 points), E&P (-14 points) and Engineering (-13 points).

    Volumes increased from 2,220 million shares as against 1,563 million shares (+42 percent DoD). Average traded value also increased by 51 percent to reach US$ 276.7 million as against US$ 183 million.

    Stocks that contributed significantly to the volumes include WTL, HUMNL, SILK, BYCO and KEL, which formed 65 percent of total volumes.

    Stocks that contributed positively to the index include TRG (+46 points), LUCK (+30 points), HBL (+23 points), DAWH (+17 points) and KTML (+8 points). Stocks that contributed negatively include PAKT (-21 points), FFC (-18 points), MTL (-16 points), MCB (-14 points) and BAFL (-12 points).