The KSE-100 rose 76.50 points, 0.79 per cent, to end at 9,791.89. Turnover was 80.52 million shares, compared with 63 million shares traded on Wednesday. The value of the shares exchanged was Rs2.96 billion.
Investors were waiting for the Securities and Exchange Commission of Pakistan (SECP) to decide whether margin buying would be reintroduced in the bourse, which according to dealers would help increase trade volumes. Investors were also dealing with the ongoing uncertainty about the new capital gains tax.
“Lack of any triggers kept locals sidelined contributing to low volumes and only sporadic interest was seen in OGDC and Engro on account of possible foreign institutional interest,” according to Elixir Securities’ analyst, Sara Shahid.
There was nothing in the market to give investors confidence to buy, and though there is still some foreign interest everyone is cautious, said dealers.
“Media reports suggested that Pakistan is likely to receive $800m under the Kerry-Lugar Bill by September, this provided the early positive impetus to the market. Meagre volumes of 82 million shares depicted investor confidence as they chose to stay sidelined awaiting tomorrow’s (Friday) final Finance Bill draft,” said JS Global Capital’s analyst, Ahmed Rauf.
The government had previously agreed with the exchange that the capital gains tax would be levied only on profits made from the start of the 2010/11 fiscal year on July 1, now there are concerns that the government might renege on the agreement and seek to tax gains made before that date and demand quarterly tax returns.
Of the 414 stocks that were traded today, 147 advanced, 238 declined and 29 remained unchanged. Trading was mixed today and the banking sector was well represented in the volumes.
OGDC stock price increased by 2.4 per cent, as international oil prices have rebounded back to $77 per barrel.
TRG Pakistan Ltd was the volume leader with 5 million shares traded; its stock price went up by Rs0.02 to end at Rs4.65.
National Bank was the second volume leader with 4.6 million shares traded; its stock price went up by Rs0.24 to end at Rs65.13.
The day’s winners were Nestle Pakistan whose stock went up by Rs82.40, 5 per cent, to end at Rs1730.45. The day’s loser was The bank of Punjab and The KESC. BoP’s stock decreased by Rs0.59 to end at 10.29 a decrease of 5.42 per cent.
Published in The Express Tribune, June 25th, 2010.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ