Market participation continued to dwindle at KSE-100 index in a range bound session on Tuesday, as looming deadline to submit Capital Gain Tax (CGT) kept investors away from the bourse.
On Tuesday, the index clocked at 47,480 level after posting a meagre 33.41 point gain by the closing bell. The index accelerated to an intraday high of 47,585.18 points and slid to an intraday low of 47,439.89 points, moving within a range of 145.29 points and closing the session in consolidation.
Earlier, trading began on a positive note and the index inched closer to the 47,600-point mark in early hours, however, investors took this as an opportunity to book profit, which interrupted the ascent and dragged the market down.
The selling pressure intensified as the session progressed, which restrained the market from posting lofty gains.
The market continued to react to surging Covid positivity ratio as it crossed 3.9% which risks a fresh round of lockdown being imposed by the government. Moreover,rising uncertainty in the Afghanistan region where the Taliban claim to control 85% of the territory which also took a toll on investors’ sentiment.
But, approaching deadline for the Investors to submit CGT to the NCCPL by the July 16th continues to remain a major reason which has dented market participation, since the NCCPLs’s move to collect CGT till May 21, ahead of the normal 12 year time-which ends on June 30th- has disrupted the investors’ payables, as most of them booked losses in June to net off gains.
Although, the market briefly cheered record remittances data revealed by the State Bank of Pakistan (SBP) during the trading hours. Remittances sent home by Pakistanis working overseas exceeded $2 billion in June for a record 13th month in a row, as per the data. Inflows of around $2.7 billion in June 2021 showed 9 per cent growth on a year-on-year basis and 8pc on a month-on-month basis, the central bank said, taking cumulative remittances to a historic annual high of $29.4 billion.
The volume at KSE-100 receded from 107.6 million shares recorded in the previous session to 102.45 million shares, while the all-share index recorded a volume of 496.82 million shares, up from 474 million shares from the previous session.
At KSE-100 the volume chart was led by Worldcall Telecom Limited followed by Ghani Global Glass Limited and TPL corp Limited followed. The scrips exchanged 48.035 million, 37.59 million and 29.41 million shares.
As per the National Clearing Company of Pakistan limited (NCCPL) foreign investors were net buyers of worth $0.77 million worth of shares.
Among local investors Individuals and the Mutual Funds led the buying chart, which mopped up $1.32 million and $0.99 million worth of equities.
Whereas, Insurance Companies and Brokers led the selling chart, and offloaded $1.8 million, $1 million worth of equities.
During the session, sectors which lifted the index were Technology & Communication with 36 points, Investment Banks with 25 points, Commercial Banks with 17 points, Fertilizer with 13 points and Paper & Board with 8 points.
Among the scrips, the most points added to the index was by PSX which contributed 21 points followed by Systems Limited with 18 points, TRG Pakistan with 16 points, Bank al Habib Limited with 16 points and Century Paper & Board Mills Limited with 8 points.
However, sectors which dented the index were Oil & Gas Exploration Companies with 17 points, Automobile Assembler with 15 points, Power Generation & Distribution with 10 points, Food & Personal Care Products with 10 points and Oil & Gas Marketing Companies with 9 points.
Among the scrips, the most points taken off the index was by Pakistan Petroleum Limited which stripped the index of 10 points followed by Muslim Commercial Bank with 9 points, Kot Addu Power Company with 8 points, Oil & Gas Development Company Limited with 7 points and Colgate Pakistan with 7 points.