Market regains composure after budget
KARACHI:
The stock market ended more than 1.6 per cent higher on Monday following the announcement of the 2010/11 budget on Saturday and dealers said the measures announced had already been discounted in the market.
The Karachi Stock Exchange (KSE) benchmark 100-share index rose 154.76 points to end at 9,791.64.
“Indirectly the budget had a positive effect on the market because everything was priced in and the uncertainty is over,” said Mohammed Sohail, chief executive of Topline Securities Ltd.
The government announced a capital gains tax of 10 per cent to be imposed on stocks held for six months or less and 7.5 per cent on stocks held for six months to a year from July 1.
The KSE authorities had announced this measure in February after negotiating with former finance minister Shaukat Tarin but dealers said there were fears of a change in its mechanism after new Finance Minister Abdul Hafeez Sheikh joined office.
Monday’s turnover was 160 million shares, compared to 97.9 million on Friday.
Second-tier stocks were the volume leaders during the day while some activity in the oil, cement, fertiliser and banking sectors was also witnessed.
The total exchange value stood at a disappointing Rs5.82 billion.
During the day’s trade, 283 stocks closed higher, 115 declined and 18 remained unchanged in value.
Lotte Pakistan (KSE: LOTPTA) was the volume leader with 24.84 million shares, hitting its upper-circuit breaker to close at Rs10.07. Jahangir Siddiqui Company (KSE: JSCL) came second with 13.83 million shares gaining Rs0.94 to close at Rs13.47.
Telecard (KSE: TELE) finished third with 7.78 million shares gaining Rs0.46 to close at Rs3.59.
“Banking and cement stocks rallied as there was fresh buying in MCB Bank, National Bank of Pakistan, Lucky Cement and DG Khan Cement, which caused their prices to surge by 4.4 per cent, 4.2 per cent, 3.7 per cent and five per cent , respectively,” said Faiza Naz, an analyst at JS Global Capital.
Lotte Pakistan, Monday’s volume leader, was also the KSE-100 top gainer of the day, its share price rising a massive 11.03 per cent.
Unilever Pakistan (KSE: ULEVER) was in the losers’ list dropping 2.14 per cent to Rs3,911.5. Pakistan Tobacco Company (KSE: PAKT) closed in the red, its share price shedding 1.44 per cent to close at Rs103.
Published in the Express Tribune, June 8th, 2010.
The stock market ended more than 1.6 per cent higher on Monday following the announcement of the 2010/11 budget on Saturday and dealers said the measures announced had already been discounted in the market.
The Karachi Stock Exchange (KSE) benchmark 100-share index rose 154.76 points to end at 9,791.64.
“Indirectly the budget had a positive effect on the market because everything was priced in and the uncertainty is over,” said Mohammed Sohail, chief executive of Topline Securities Ltd.
The government announced a capital gains tax of 10 per cent to be imposed on stocks held for six months or less and 7.5 per cent on stocks held for six months to a year from July 1.
The KSE authorities had announced this measure in February after negotiating with former finance minister Shaukat Tarin but dealers said there were fears of a change in its mechanism after new Finance Minister Abdul Hafeez Sheikh joined office.
Monday’s turnover was 160 million shares, compared to 97.9 million on Friday.
Second-tier stocks were the volume leaders during the day while some activity in the oil, cement, fertiliser and banking sectors was also witnessed.
The total exchange value stood at a disappointing Rs5.82 billion.
During the day’s trade, 283 stocks closed higher, 115 declined and 18 remained unchanged in value.
Lotte Pakistan (KSE: LOTPTA) was the volume leader with 24.84 million shares, hitting its upper-circuit breaker to close at Rs10.07. Jahangir Siddiqui Company (KSE: JSCL) came second with 13.83 million shares gaining Rs0.94 to close at Rs13.47.
Telecard (KSE: TELE) finished third with 7.78 million shares gaining Rs0.46 to close at Rs3.59.
“Banking and cement stocks rallied as there was fresh buying in MCB Bank, National Bank of Pakistan, Lucky Cement and DG Khan Cement, which caused their prices to surge by 4.4 per cent, 4.2 per cent, 3.7 per cent and five per cent , respectively,” said Faiza Naz, an analyst at JS Global Capital.
Lotte Pakistan, Monday’s volume leader, was also the KSE-100 top gainer of the day, its share price rising a massive 11.03 per cent.
Unilever Pakistan (KSE: ULEVER) was in the losers’ list dropping 2.14 per cent to Rs3,911.5. Pakistan Tobacco Company (KSE: PAKT) closed in the red, its share price shedding 1.44 per cent to close at Rs103.
Published in the Express Tribune, June 8th, 2010.