KARACHI: Pakistan Stock Exchange on Friday witnessed highly volatile session and after positive opening, nosedived on rumours the capital gains and dividend tax rate might be increased in next budget to match standard personal or corporate income tax rates.
However, the market recovered most of its intra-day losses as investor came back in the second session to accumulate shares given monetary policy meeting on Monday where market expect cut in policy rate by 100-200 basis points and the fact increase in tax on capital market is a rumour at this point in time.
The benchmark KSE-100 Index hit 73,902.79 points intraday high just after opening, however due to panic selling nosedived at 71,781.96 points intraday low, down 2080.97 points before closing at 73,754.02 points, down 108.91 points or 0.15 percent.
The daily volumes on ready counter increased to 559.550 million shares as compared to 352.738 million shares traded on Thursday while total daily traded value on the ready counter increased to Rs 20.208 billion against previous session’s Rs 12.312 billion.
BRIndex100 lost 23.58 points or 0.31 percent to close at 7,693.98 points with total daily turnover of 384.286 million shares.
BRIndex30 decreased by 86.65 points or 0.35 percent to close at 24,691.05 points with total daily trading volumes of 261.456 million shares.
Foreign investors also remained net sellers of shares worth $338,377. Total market capitalization declined by Rs 43 billion to Rs 9.903 trillion. Out of total 441 active scrips, 200 closed in negative and 180 in positive while the value of 61 stocks remained unchanged.
Pervez Ahmed Co was the volume leader with 78.926 million shares and gained Rs 0.80 to close at Rs 1.50 followed by Fauji Cement that increased by Rs 0.85 to close at Rs 22.79 with 34.397 million shares. WorldCall Telecom closed at Rs 1.32, up Rs 0.01 with 28.267 million shares.
Sapphire Fibres and Hoechst Pakistan were the top gainers increasing by Rs 62.21 and Rs 38.33 respectively to close at Rs 1,499.41 and Rs 1,400.00 while Rafhan Maize Products Company and Nestle Pakistan were the top losers declining by Rs 299.40 and Rs 292.91 respectively to close at Rs 7,587.05 and Rs 6,995.33.
An analyst at Topline Securities said that volatile session was observed at the exchange where index declined to make an intraday low of minus 2,081 points largely on rumours that in budget for FY25 capital gains and dividend tax rate might be increased to match standard personal or corporate income tax rates, with the maximum personal income tax slab rising to a maximum slab of 45 percent.
However, as the day progressed better sense prevailed as investors came in to accumulate shares given monetary policy meeting on Monday where market expect cut in policy rate by 100-200 basis points and the fact increase in tax on capital market is a rumour at this point in time (where market has already declined by 2.8 percent on WoW basis).
MEBL, PPL, HBL, MCB, OGDC and UBL lost value to weigh down on the index by 302 points.
BR Automobile Assembler Index surged by 233.92 points or 1.39 percent to close at 17,084.31 points with total turnover of 17.945 million shares.
BR Cement Index increased by 93.39 points or 1.24 percent to close at 7,617.19 points with 61.280 million shares.
BR Commercial Banks Index plunged by 247.97 points or 1.25 percent to close at 19,573.70 points with 33.422 million shares.
BR Power Generation and Distribution Index closed at 17,663.42 points, down 1.37 points or 0.01 percent with 30.209 million shares.
BR Oil and Gas Index declined by 68.63 points or 1.07 percent to close at 6,329.38 points with 29.157 million shares.
BR Tech. & Comm. Index gained 30.85 points or 0.77 percent to close at 4,011.80 points with 75.479 million shares.
Mubashir Anis Naviwala at JS Global Capital said the market opened in panic mode and took a nosedive, losing 2,000 points due to rumors of heavy taxation in the upcoming budget. Eventually, the market started to recover, mainly led by cyclical stocks.
Traded volume stood at 560 million shares. PASL (up 114 percent), FCCL (up 3.9 percent), WTL (up 0.8 percent), SEARL (up 6.0 percent) and KEL (up 0.2 percent) were volume leaders.
Copyright Business Recorder, 2024
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