Stock
Karachi Stocks Down 75.71 Points:
KARACHI, June 02: At close of trading, the KSE-100 index was at 12188.35, down 75.71 points. (Bureau Report) (Updated @ 15:30 PST)
June 03, 2011
KSE 30 – Shares Index Previous 11,784.43, Friday’s 11,810.79, plus 26.36 points.
KSE 100 – Shares Index Previous 12,179.81, Friday’s 12,236.66, plus 56.85 points.
MARKET CAPITALIZATION Previous Rs.3,236.774bn, Friday’s 3,251.935bn, plus 15.161bn.
VOLUME LEADERS Fauji Cement(right),11.043m shares, D.G.Khan Cement 6.533m, Bank of Punjab 4.288m,Fatima Fertiliser 3.080m, Nishat Mills 2.439m shares.
TOTAL VOLUME 65.315m shares
TOTAL TONE:steady,total listed 639,active 354,inactives 285,plus 148,minus 104,unchanged 102
Nestle Pakistan Rs 81.50 National Refinery Rs (1.89)
UniLever Pak Rs 39.76 Packages Limited Rs (1.67)
Bata (Pak) Ltd Rs 25.13 National Refinary Rs (1.89)
Pak Tobacco Rs 4.07 Dynea Pakistan Rs (1.45)
Shahmurad Sugar Rs 2.66 Ghani Glass Rs (1.25)
Automobiles & Parts
Banks
Beverages
Chemical
Construction and Materials
Electronic & Electrical Equip
Electricity
Equity Investment Instruments
Financial Services
Food Products
Forestry and Paper
Fixed Line Telecommunication
Gas Water & Multiutilities
General Industrial
Household Goods
Health Care Equip & Services
Industrial Engineering
Industrial Metals and Mining
Industrial Transportation
Leisure Goods
Life Insurance
Media
Non Life Insurance
Oil & Gas Cos
Personal Goods
Pharma & Biotechnology
Real Estate & Services
Support Services
Software & Comptuter Service
Tobacco
Technology Hardware & Equip
Travel & Leisure
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
Next to nothing for stock market
KARACHI, June 3: Except for the Finance Minister’s perseverance to keep reading his budget speech in the face of a deafening cacophonous hullabaloo and the Rs200 per ton cut in Federal Excise Duty on cement, most brokers and analysts said they had scarcely a reason to smile.
On the face of it, the budget seemed to offer next to nothing for investors in stocks.
The capital market experts were at a loss to say if the budget had solved one major riddle regarding stock investment: The exemption of Capital Gains Tax (CGT) for small investors/individuals. The confusion was so profound that even the KSE directors were not sure if the CGT on individuals had been waived or was still intact.
Two directors consulted late in the evening held opposite views; both, however, asked not to be named. But as stock brokers feverishly downloaded and scrolled down the budget document to ponder over section 37A of the Income Tax Ordinance, 2001, their jaws dropped.
“The section 37A of the Ordinance lists the CGT rate on stocks,” said one, adding, “It is the same as last year.”
A broker shrilled that it was a breach of the promise made by the Finance Minister to a team of senior brokers, who had met him the previous month in Islamabad.
An optimist, however, thought that an amendment may yet be made, after the budget discussion in the parliament.
Analysts, such as Faisal Shaji, head of online equity at Standard Capital Securities, termed it a “healthy budget.”
Federal Excise Duty on cement had been slashed by Rs200, from Rs700 to Rs500, with the express intention to write all of it off in next two years. Faisal said the allocation of higher amount for Public Sector Development Programme would give impetus to the cement demand and enable full utilisation of capacity.
Some analysts who went along with the Standard Capital analysis, said that the reduction of General Sales Tax–inflationary in its impact– from 17 to 16 per cent, would help rein inflation. Analysts at professional firms and brokerages, always in a race to be the first to come up with budgetary comments, fished out some other budgetary measures.
One said that the document included a proposal to offer incentive of tax exemption for five years to existing or new companies that invest in plant & machinery.
Aside from the great expectations regarding the CGT, the market had almost held a consensus view over increase of tax rate for banks from 35 to 40, due to their reluctance in cutting down the spread. That however was not to be and offered some cheers to investors in the sector and bankers.
Stocks gain 56 points in speculative trading
KARACHI, June 3: Active bouts of buying and selling were witnessed during the pre-budget session on the stock market on Friday as bargain-hunters and speculators followed conflicting rumours in quick succession about the fiscal measures for the new year.
The benchmark ended the weekend session at 12,236.66, up 56.85 points as compared to 12,179.81 a day earlier as some of the leading base shares, notably on the oil counters remained in active demand and rose amid brisk two-way activity.
“Attempted rallies here and there featured the pre-budget trading in shares but an expected strong rally failed to develop in the absence of some inside leaks,” said a leading analyst Ahsan Mehanti and added: “Lack of positive rumours on the CGT issue, a future market trend-setter, appeared to be the chief worry of investors.”
But he said cement shares reacted favourably under the lead of Lucky and D G Khan cement on market talk of progressive excise waiver for the industry during the next couple of years.
Another leading analyst Hasnain Asghar Ali hopes possible cut in the sales tax to 16 per cent from 17 per cent, some changes in the central excise and custom duties could boost activity on their respective counters, notably cement and oils but fresh taxes may take their toll on the corporate sector.
The Rs2.6 trillion budget may have some plus points for the investors, the impact of which will be known after the market reopens on next Monday but some of the sectors, which could be the chief beneficiary of the relief and taxes, performed accordingly in normal trading session, floor brokers said.
All eyes, however, remained focused on the issue of Capital Gain Tax (CGT) notably the modifications suggested by the KSE on the mode of its collection from the small investors, analyst Samar Iqbal said, and added: “But rumours about it proved a double-edge weapon for both the bulls and the bears, who interpreted it according to their perceptions”.
“The market could react positively to some of the measures linked to capital markets for the near-term, another leading analyst Ashraf Zakaria said, and added: “The gloomy picture of the economy, law and order situation, resource constraints will have final word on its future outlook.”
Prominent gainers were led by Nestle Pakistan and Unilever Pakistan, up by Rs81.50 and 39.76, while top losers included National Refinery and Packages, off Rs1.89 and 1.67.
The traded volume shrank further to 65.315m shares from the previous 87m shares but gainers held a modest lead over the losers at 148 to 104, with 102 shares holding on to the last levels.
The active list was led by Fauji Cement (right) steady by four paisa at Rs0.13 on 11m shares followed by D G Khan Cement, lower by 12 paisa at Rs24.67 on 7m shares, Bank of Punjab, firm by 23 paisa at Rs6.35 on 4m shares, Fatima Fertiliser, up 11 paisa at Rs13.55 on 3m shares, Nishat Mills, off 46 paisa at Rs59.37 also on 3m shares, Lucky Cement, higher by Rs2.78 on 2m shares, J.S. & Co, easy 12 paisa at Rs7.68 on 2m shares.
They were followed by Lotte Pakistan, steady by one paisa at Rs14.97 on 2m shares, Fauji Cement, firm by 26 paisa at Rs4.90 also on 2m shares and Azgard Nine, lower 13 paisa at Rs6.53 also on 2m shares.
FUTURE CONTRACTS: Easy conditions prevailed on this counter as leading shares came in for fresh selling under the lead of Pakistan Oilfields and Engro Corporation, which fell by Rs20 and Rs1.27 at Rs399.11 and Rs193.56 on 0.222 and 0.262m shares, respectively.
Nishat Mills followed them, off 58 paisa at Rs59.59 on 0.287m shares, Attock Refinery, up 50 paisa at Rs140.16 on 0.399m shares and D. G. Khan Cement, up 60 paisa at Rs24.50 on a large volume of 1.244m shares.
Mixed trend on KSE
With mixed trend prevalent at the stock market during the week ended on June 3, 2011, the KSE-100 index closed at 12,236.66 points with a meagre gain of 11.14 points. The market remained in the grip of budget-related uncertainties throughout the week as all eyes remained on the budget related news flow, which drove investor sentiment, analysts said.
Trading improved, and average daily volume at ready counter increased to 102.93 million shares, or by 24.2 percent, compared to previous week's 82.89 million shares.
Market capitalisation increased by Rs 10 billion to Rs 3.251 trillion. Foreign investors continued to be net buyers of shares worth $7.1 million, while mutual funds came out as net sellers of $5.9 million.
On Monday, the market opened under pressure and the index declined by 29.93 points to close at 12,195.59 points with volume of 120.596 million shares.
On Tuesday, the index lost 72.44 points to close at 12,123.15 points with 123.103 million shares.
On Wednesday, some budget-related positive news invited fresh buying and the index increased by 140.91 points to close at 12,264.06 points with 118.307 million shares.
On Thursday, investors opted for selling and the index lost 84.25 points to close at 12,179.81 points with 87.311 million shares.
On Friday, the index recovered 56.85 points and closed the week at 12,236.66 points with 65.315 million shares.
Rabia Tariq, analyst at JS Global Capital, said that all eyes remained on the budget related news flow, which drove investor sentiment through the week. The volume witnessed improvement by 24 percent on rumours that the government may switch capital gain tax (CGT) with transaction tax for individuals.
Refineries and OMCs remained in the limelight on news of partial deregulation of petroleum prices. The Economic Survey was also released, with FY11 GDP growth reported at 2.4 percent.
The oil and gas sector gained 1.7 percent the Ministry of Petroleum partially deregulated local prices of key petroleum products. This would allow companies to determine monthly product prices. Refineries are to be the key beneficiaries of this with ATRL gaining 4.6 percent and NRL 3.4 percent on a weekly basis. Moreover, banks remained underperformers on concerns over rising NPLs along with IPPs as the circular debt continues to create cash flow woes.
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