Stocks witnessed post-budget enthusiasm on Monday at Pakistan Stock Exchange (PSX) as benchmark KSE-100 index moved up 421 points by the closing bell to clock at 48,726 level
Friday’s power pack growth-led budget unveiled multiple benefits for the stock market which supported investors’ hopes, lifting the index to touch intraday high just short of 49,000 level. On Friday, the PTI led government announced its third financial budget, which was cheered by nearly every stakeholder, but capital markets were among the most excited- following the list of incentives proposed by the government.
One of the major incentives included a reduction in capital gain tax (CGT) from15% to 12.5% which majorly cushioned the investors’ interest in the market.
Moreover, reduction in GST on 850cc or lower capacity vehicles, tax incentives to refineries, reduction in turnover tax to 1.25%, allocation of record PSDP of Rs900bn, removal of WHT on cash withdrawals, also boosted investors’ sentiments. During the session Market Capital increased by Rs 99.02 billion, while total value traded increased by 17.97 billion to Rs.42.85 billion.
The volume at KSE-100 surged from 373.9 million shares recorded in the previous session to 507.8 million shares, while the volume at all shares index also jumped from 1.024 billion shares from the previous session to 1.22 billion shares.
At KSE-100 the volume chart was led by Byco Petroleum Pakistan Limited followed by Hum Network Limited and WorldCall Telecom Limited. The scrips exchanged 109 million, 108.39 million and 90.04 million shares.
As per the National Clearing Company of Pakistan limited (NCCPL) foreign investors were net sellers of worth $0.96 million worth of shares. Among local investors, Companies, Banks, Insurance Companies and Brokers led the selling chart, which offloaded $8.9 million, $3.7 million, $3.5 million and $1.2 million worth of equities. However, Individuals and Mutual Funds led the buying chart and mopped up about $14.7 million and $3.1 million worth of equities.
During the session, sectors which lifted the index were Oil & Gas Exploration Companies with 201 points, Cement with 92 points, Engineering with 52 points, Commercial Banks with 42 points and Oil & Gas Marketing Companies with 32 points. Among the scrips, the most points added to the index was by Oil & Gas Development Company Limited which contributed 105 points followed by Pakistan Petroleum LimitedL with 68 points, Systems Limited with 44 points, INIL with 27 points and Pakistan Oilfields Limited with 25 points.
However, sectors which dented the index were Fertilizer with 43 points, Textile Composite with 27 points, Technology & Communication with 21 points, Food & Personal Care Products with 16 points and Chemical with 5 points.
Among the scrips, the most points taken off the index was by TRG Pakistan which stripped the index of 61 points followed by Fauji Fertilizer Company Limited with 27 points, Unity Foods with 17 points, Fauji Fertilizer Bin Qasim Limited with 13 points and National Refinery Limited with 10 points.