Stock
Karachi Stocks Up 37.54 Points:
KARACHI, May 25: At close of trading, the KSE-100 index was at 12168.12, up 37.54 points. (Bureau Report) (Updated @ 15:30 PST)
KARACHI, May 25: At close of trading, the KSE-100 index was at 12168.12, up 37.54 points. (Bureau Report) (Updated @ 15:30 PST)
May 25, 2011
| KSE 30 – Shares Index | Previous 11,754.80,Wednesday’s 11,803.58,plus 48.78 |
| KSE 100 – Shares Index | Previous 12,130.58, Wednesday’s 12,168.12,plus37.54 points |
| MARKET CAPITALIZATION | Previous Rs.3,214.111bn,Wednesday’s 3,225.616bn,plus 11.505bn |
| VOLUME LEADERS | Azgard Nine 19,363m, J.S.& Co 15.612m, Bank of Punjab 11.880m,NIB Bank 6.773m, Lotte Pakistan 5.553m shares. |
| TOTAL VOLUME | 122.922m shares |
| TOTAL | TONE:firm, total listed 638, actives 360, inactives 278, plus 209, minus 63, unchanged 88 |
 | |
| Bata (Pak) Ltd | Rs 14.95 | Pak Tobacco | Rs (2.05) |
| Indus Dyeing | Rs 8.79 | UniLever Pak | Rs (86.68) |
| Shezan Internat | Rs 7.16 | Siemens Pak | Rs (45.00) |
| Blessed Textiles | Rs 3.15 | Nestle Pakistan | Rs (44.45) |
| Shell Pakistan | Rs 4.26 | Al-Noor Sugar | Rs (2.33) |
NOTE: All rates in Rupees. Unless indicated otherwise, each share is valued at Rs.10.
* Shares valued at Rs.5, ** Shares valued at Rs.50, *** Shares valued at Rs.100
KSE ends on 3-month high, rupee weakens
KARACHI: Karachi Stock Exchange (KSE) ended on a three-month high on Wednesday amid hopes of a removal of a capital gains tax, which could be announced in the 2011/12 budget, dealers said.
The 2011/12 (July-June) budget is due to be unveiled on June 3.
According to media reports, the government may decide to remove the capital gains tax. A 10 percent capital gains tax is imposed on stocks held for six months or less and 7.5 percent on stocks held between 6 months to a year.
Officials from the finance ministry declined to comment.
The Karachi Stock Exchange's benchmark 100-share index ended 0.31 percent, or 37.54 points, higher at 12,168.12. Volume rose to 122.92 million shares, compared with 70.11 million shares traded on Tuesday.
"Prevailing bullish sentiment pushed the KSE-100 index to a 3-months high level while volume rose to 14-day high to 3.3 billion rupees," said Samar Iqbal, a dealer at Topline Securities Ltd.
In the currency market, the rupee ended weaker at 85.64/74 to the dollar, compared with Tuesday's close of 85.57/63. It hit a record low of 86.50 on Monday amid increased demand for dollar for import payments and a bleak outlook.
There are concerns about the growing tensions with the West, which could choke off much needed foreign aid.
Foreign exchange reserves also eased to $16.97 billion in the week ending on May 14 after reaching a record high of $17.95 billion in March, due to scheduled debt repayments.
Concerns over a reduction in foreign aid have flared since US special forces found and killed al Qaeda leader Osama bin Laden early this month in a house near the Pakistani capital.
The rupee has lost 1.32 percent of its value since then, almost the same as its total loss of 1.53 percent in 2010.
The rupee's slump to a record low comes a little over a month after it rose to an 11-month high suggesting its outlook has weakened because of uncertainty following bin Laden's death.
In the money market, overnight rates ended flat between 13.75 percent and 13.90 percent, unchanged from the previous day's close and dealers said they were awaiting result of the Pakistan Investment Bond auction due to be announced later in the day.
Stocks gain 37 points on CGT optimism
KARACHI, May 25: The share market on Wednesday remained in an optimistic mood as a loud whispering about the changes in collection mode of capital gains tax in the budget further intensified speculative run amid an actively traded session.The benchmark maintained its upward drive and added another 37.54 points to the overnight total as leading base shares came in for fresh covering purchases.
The turnover figure crossed the 100m-mark after several weeks although a half of it was contributed by the low-priced shares. However, it reflected a significant change in the future investor perceptions about the budget and CGT regime.
“Information leaking from the visiting KSE team in Islamabad suggest a healthy bargain on the CGT is on the cards,” analyst Hasnain Asghar Ali said. “The changes will increase manifold official revenue from the equity market,” he hoped.
Ahsan Mehanti said the CGT issue dominated the trading throughout the session amid hopes that a meeting between the Pakistan Business Council and the finance minister on the proposed changes may be positive.
The fresh run-up was largely aided by the oil sector, notably Pakistan Oilfields, Pakistan Petroleum and PSO followed by reports of fresh rise in international oil prices, analyst Samar Iqbal said. “The benchmark at three-month high reflects the pre-budget investor mood.”
Plus signs again dominated the list under the lead of Bata Pakistan and Indus Dyeing, up by Rs14.95 and Rs8.79, while top losers were led by Unilever Pakistan and Siemens Pakistan, off by Rs86.68 and Rs45.
Traded volume rose to 122.922m shares from the previous 70m shares as gainers outpaced losers by 209 to 63, with 85 shares holding onto the last levels.
The active list was led by Azgard Nine, up 56 paisa at Rs6.58 on 19m shares followed by JS & Co, firm by 61 paisa at Rs8.12 on 16m shares, Bank of Punjab, higher by Re1 at Rs6.15 on 12m shares, NIB Bank, up 21 paisa at Rs1.71 on 7m shares, Lotte Pakistan, steady by three paisa at Rs15.28 on 6m shares, Arif Habib Corpn, higher by Rs1.03 at Rs23.42 on 5m shares and D.G. Khan Cement, firm by 47 paisa at Rs22.86 on 4m shares.
They were followed by Bank Alfalah, higher by 18 paisa at Rs10.81 on 3m shares, Byco Petroleum, steady by six paisa at Rs9.20 also on 3m shares and Nishat Power, up 11 paisa at Rs17.30 on 3m shares.
FUTURE CONTRACTS: Active trading was witnessed in the June settlement of D.G. Khan Cement, up 39 paisa at Rs22.64 on 1.137m shares, while its May contract rose by 52 paisa at Rs22.89 on 0.598m shares, National Bank rose by Rs1.11 at Rs53.09 on 0.472m shares.
But Lucky Cement on the other hand remained under pressure and its May settlement fell by five paisa at Rs70.77 on 0.338m shares, the ruling June was marked down by 59 paisa at Rs71.69 on 0.338m shares.
DEFAULTER COS: Japan Power led the list of actives, easy by two paisa at Rs1.20 on 0.137m shares followed by Invest Bank, lower by five paisa at Rs0.35 on 46,771 shares, Hajra Textiles, steady by one paisa at Rs0.63 on 13,001 shares and Shakarganj Foods, unchanged at Rs2.50 on 14,000 shares. All others showed fractional changes amid slow business.
Govt to review Capital Gains Tax on stocks
KARACHI, May 24: The meeting between the Ministry of Finance, headed by Federal Finance Minister Abdul Hafeez Sheikh and the Pakistan Business Council (PBC) in Islamabad on Monday and Tuesday focused on several matters of interest and concern to the business community.The Capital Gains Tax on stocks–mainly the methodology of its collection came under consideration and also issues relating to the turnaround and privatisation of state-owned enterprises (SOEs).
A third round of the marathon consultations would be held in the next few days.
Sitting on the PBC side of the table were also the chairman KSE Munir Kamal and market expert/ broker Arif Habib and Aqeel Karim Dhedhi.
Earlier on Monday, the delegation had met the President, Asif Ali Zardari.
From the stock exchange point of view, the burning issue was the CGT, which the business/brokers pointed out was unable to generate required revenue for the government, but was the principal factor in depleting volumes at the market.
A member present at the meeting said that it was emphasised that the method of collecting CGT had raised concerns among small investors.
Instead of the CGT, the revival of withholding tax at 0.02 per cent on trading was recommended to the government.
In the earlier meeting with the President on Monday, a member said that the President had directed the Finance Ministry to review the matter.
Other than that, the government was anxious to revitalise the ailing public sector units. The ministry proposed to hand over management control of such sick state-owned enterprises (SOEs) to a consortium of private parties, which could push to turnaround and wipe the red off their balance sheets. The units could then be offered for privatisation. In respect of SOEs—both sick and healthy—four proposals were laid on the table for discussion: One to hand over the management through contracts; two to privatise (units like SLIC etc); three to list on the stock exchanges and four to divest more of government-held equity in blue chip companies, such as PPL, OGDC and others.
It was agreed that subsidies provided to worthless units should be withdrawn.
The KSE side also asked for 15 per cent tax rebate for five years to new companies that enter the capital market for listing and a cut in tax rate for listed companies that distribute 50 per cent or more of their yearly profit in dividends to shareholders.
Bullish trend continues
Bullish trend continued at Karachi share market on Wednesday and the KSE-100 index gained 37.54 points to close at 12,168.12 points. Trading improved and the volume at ready counter increased to 122.922 million shares as compared to 70.111 million shares traded on Tuesday. Market capitalisation increased by Rs 11 billion to Rs 3.225 trillion.
Of 360 active scrips, 209 closed in positive and 63 in negative, while the values of 88 stocks remained unchanged. Azgard Nine was the volume leader, with 19.363 million shares, and gained Re 0.56 to close at Rs 6.58. Jahangir Siddiqui Co inched up by Re 0.61 to close at Rs 8.12 with 15.612 million shares.
BoP, NIB Bank and Bank Al Falah increased by Re 1.00, Re 0.21 and Re 0.18 to close at Rs 6.15, Rs 1.71 and Rs 10.81 with 11.880 million shares, 6.773 million shares and 3.396 million shares respectively. Lotte Pakistan PTA inched up by Re 0.03 to close at Rs 15.28 with 5.553 million shares. Arif Habib Corp surged by Rs 1.03 to close at Rs 23.42 with 4.873 million shares. D G Khan Cement increased by Re 0.47 to close at Rs 22.86 with 3.814 million shares. Byco Petroleum gained Re 0.06 to close at Rs 9.20 with 3.150 million shares. Nishat Power inched up by Re 0.11 to close at Rs 17.30 with 3.087 million shares.
Bata (Pak) and Indus Dyeing were the highest gainers increasing by Rs 14.95and Rs 8.79 to close at Rs 486.36and Rs 303.55 respectively, while Unilever Pak and Siemens Pak were the worst losers declining by Rs 86.68 and Rs 45.00 to close at Rs 5167.00 and Rs 980.00 respectively.
Hasnain Asghar Ali at Aziz Fidahusein said that whispers regarding relaxation in capital gain tax (CGT) implementation mechanism fuelled the bulls. The frontline stocks led the momentum on back of fresh influx by the corporate, retail and leverage participants and allowed the local bourse to stage handsome gains backed by decent turnover. Although low priced and below par stocks contributed more than 50 percent to the total turnover. Emergence of quality volume, indicating confidence revival, was quite evident.
He said that although official changes are unlikely to be announced before budget, body language, translated by the visiting team from KSE, suggested that a healthy bargain is on the cards. This would not only increase revenues from equity markets manifold, but in depth increase would also certainly enable higher than expected proceeds of planned privatisation. Despite absence of official commitment, the local stakeholders' accumulated the stocks are likely to display strength, thus inviting an across the board recovery. Leading from the front were indeed dividend-yielders while growth stocks followed pursuit, since return of turnover mainly in the frontline stocks in the list of MTS is likely to offer substantial rise in valuations, thereby keeping the resident participants anxious from fresh bets, he added.
Of 360 active scrips, 209 closed in positive and 63 in negative, while the values of 88 stocks remained unchanged. Azgard Nine was the volume leader, with 19.363 million shares, and gained Re 0.56 to close at Rs 6.58. Jahangir Siddiqui Co inched up by Re 0.61 to close at Rs 8.12 with 15.612 million shares.
BoP, NIB Bank and Bank Al Falah increased by Re 1.00, Re 0.21 and Re 0.18 to close at Rs 6.15, Rs 1.71 and Rs 10.81 with 11.880 million shares, 6.773 million shares and 3.396 million shares respectively. Lotte Pakistan PTA inched up by Re 0.03 to close at Rs 15.28 with 5.553 million shares. Arif Habib Corp surged by Rs 1.03 to close at Rs 23.42 with 4.873 million shares. D G Khan Cement increased by Re 0.47 to close at Rs 22.86 with 3.814 million shares. Byco Petroleum gained Re 0.06 to close at Rs 9.20 with 3.150 million shares. Nishat Power inched up by Re 0.11 to close at Rs 17.30 with 3.087 million shares.
Bata (Pak) and Indus Dyeing were the highest gainers increasing by Rs 14.95and Rs 8.79 to close at Rs 486.36and Rs 303.55 respectively, while Unilever Pak and Siemens Pak were the worst losers declining by Rs 86.68 and Rs 45.00 to close at Rs 5167.00 and Rs 980.00 respectively.
Hasnain Asghar Ali at Aziz Fidahusein said that whispers regarding relaxation in capital gain tax (CGT) implementation mechanism fuelled the bulls. The frontline stocks led the momentum on back of fresh influx by the corporate, retail and leverage participants and allowed the local bourse to stage handsome gains backed by decent turnover. Although low priced and below par stocks contributed more than 50 percent to the total turnover. Emergence of quality volume, indicating confidence revival, was quite evident.
He said that although official changes are unlikely to be announced before budget, body language, translated by the visiting team from KSE, suggested that a healthy bargain is on the cards. This would not only increase revenues from equity markets manifold, but in depth increase would also certainly enable higher than expected proceeds of planned privatisation. Despite absence of official commitment, the local stakeholders' accumulated the stocks are likely to display strength, thus inviting an across the board recovery. Leading from the front were indeed dividend-yielders while growth stocks followed pursuit, since return of turnover mainly in the frontline stocks in the list of MTS is likely to offer substantial rise in valuations, thereby keeping the resident participants anxious from fresh bets, he added.
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