KARACHI: Disappointed of the unyielding stance of the finance ministry on news regarding the Capital Gains Tax (CGT) amnesty, investors opted to book profits on Thursday – in continuation with a downward trend in the market triggered first on Wednesday.
The Karachi Stock Exchange’s benchmark 100-share index fell 0.89% or 123.22 points to end at the 13,693.74 point level.
Meanwhile, rumors intensified in the market that the Statutory Regulatory Order pursuant to relaxations in the CGT regime may now coincide with the passage of the Finance Bill scheduled in June.
“In spite of this, cement stocks continued to attract investors’ attention on account of recovery in domestic cement sales and improved margins,” said Samar Iqbal; an equity dealer at Topline Securities.
Trade volumes fell by almost a third to 340.51 million shares compared with Wednesday’s tally of 511.29 million shares.
According to Murtaza Jafar, analyst at JS Global, “active buying was witnessed in Pakistan Petroleum Ltd on the back of rumors of a delay in its Secondary Public Offering – of up to 2.5% of the Government of Pakistan’s stake [in the company] – beyond June 2012.”
Shares of 362 companies were traded on Thursday. At the end of the day 92 stocks closed higher, 212 declined while 58 remained unchanged. The value of shares traded during the day was Rs7.07 billion.
Fauji Cement was the volume leader with 30.14 million shares losing 6.43% or Rs0.46 to finish at Rs6.69. It was followed by Jahangir Siddiqui Company with 27.85 million shares losing 5% or Rs1.04 to close at Rs19.77 and DG Khan Cement with 21.51 million shares losing 4.77% or Rs2.00 to close at Rs39.97.
Foreign institutional investors (FIIs) were buyers of Rs281.87 million and sellers of Rs174.34 million, according to data maintained by the National Clearing Company of Pakistan Limited. “FII’s were rumored sellers in fertiliser scrips, while locals were seen buying cement and banking stocks,” said Jafar.
Published in The Express Tribune, April 13th, 2012.
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My guess is Ordinance (NRO) will be issued after the current session of the parliment