The Karachi stock market remained in the bullish zone on the first trading day of the week Monday on support from Adviser to the Prime Minister on Finance, Shaukat Tareen and Securities and Exchange Commission of Pakistan (SECP) officials’ address regarding tax issues during their visit to the Karachi Stock Exchange (KSE).
Analysts said that proposal on removal of withholding tax on sale of securities, minimal audit on federal excise duty collection and presumptive tax regime (PTR) adjustment against due tax was taken positively by both retail and institutional investors resulting in renewed confidence. The KSE 100-share index gained 67.21 points or 0.90 percent to close at 7,538.49 points as compared to 7,471.28 points of the previous trading session. The KSE 30-share index increased by 109.58 points and closed at 8,102.87 points as compared with 7,993.29 points. The KMI 30 index also surged 72.20 points to close at 11,245.23 points as against 11,211.16 points.
The market turnover went down by 30.00 percent and traded 127.06 million shares as compared to previous session’s 181.54 million shares. The overall market capitalisation was up by 0.81 percent to close at Rs 2.223 trillion as compared with Rs 2.205 trillion. Out of total 287 companies, 135 closed in the positive zone, 131 in negative, while 21 remained unchanged.
“Momentum that turned positive was accompanied by a comparatively decent turnover due to discounting of the upcoming events likely to be positive for the economy,” said analyst at Shazad Chamdia Sec Husnein Asghar Ali. The unveiling of the monetary and trade policies and the roar of introduction of various leverage products to cater to the liquidity needs for ready board and future trades failed to maintain the pace at the opening, although the 100-share index managed to stay positive, low turnover reflected the underlying tone. Offloading in banking, refinery and various other sectors by the local participants kept the turnover ticking besides providing trading opportunity to the market participants.
Day end activity in the index heavy weight OGDC changed the entire scene on the back of unofficial news of withdrawal of withholding tax on sale of shares and making PTR an adjustable tax from previously minimum tax, the development although kept the participants on the sidelines as the relaxation brought down the cost of propriety trading by 60 percent, thus ensuring decent rise in turnover, besides providing firm base to the high net worth and institutional participants to trade in the market.
The KSE 100 index opened in the green zone with a gain of 24.53 points and at the end of the day closed at 7,538.49 points with a gain of 67.21 points.
Analysts said that proposal on removal of withholding tax on sale of securities, minimal audit on federal excise duty collection and presumptive tax regime (PTR) adjustment against due tax was taken positively by both retail and institutional investors resulting in renewed confidence. The KSE 100-share index gained 67.21 points or 0.90 percent to close at 7,538.49 points as compared to 7,471.28 points of the previous trading session. The KSE 30-share index increased by 109.58 points and closed at 8,102.87 points as compared with 7,993.29 points. The KMI 30 index also surged 72.20 points to close at 11,245.23 points as against 11,211.16 points.
The market turnover went down by 30.00 percent and traded 127.06 million shares as compared to previous session’s 181.54 million shares. The overall market capitalisation was up by 0.81 percent to close at Rs 2.223 trillion as compared with Rs 2.205 trillion. Out of total 287 companies, 135 closed in the positive zone, 131 in negative, while 21 remained unchanged.
“Momentum that turned positive was accompanied by a comparatively decent turnover due to discounting of the upcoming events likely to be positive for the economy,” said analyst at Shazad Chamdia Sec Husnein Asghar Ali. The unveiling of the monetary and trade policies and the roar of introduction of various leverage products to cater to the liquidity needs for ready board and future trades failed to maintain the pace at the opening, although the 100-share index managed to stay positive, low turnover reflected the underlying tone. Offloading in banking, refinery and various other sectors by the local participants kept the turnover ticking besides providing trading opportunity to the market participants.
Day end activity in the index heavy weight OGDC changed the entire scene on the back of unofficial news of withdrawal of withholding tax on sale of shares and making PTR an adjustable tax from previously minimum tax, the development although kept the participants on the sidelines as the relaxation brought down the cost of propriety trading by 60 percent, thus ensuring decent rise in turnover, besides providing firm base to the high net worth and institutional participants to trade in the market.
The KSE 100 index opened in the green zone with a gain of 24.53 points and at the end of the day closed at 7,538.49 points with a gain of 67.21 points.
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