KARACHI – Investors turned bearish following news that FBR is in the hunt of investors’ details, from different brokerage houses, for computation of Capital Gains Tax (CGT), as retail investors had responded poorly to tax returns filling.
The KSE- 100 index shed 82 points to close at 11,653 levels, while 89 million shares were traded. Cement stocks came in for active covering after manufacturers increased prices by Rs 10 per bag. Cement prices in the north are currently hovering in the vicinity of Rs 415, while prices in the south are said to be around Rs 345 per bag.
Foreigners were rumoured sellers in energy names, while locals were seen active in cement stocks. Scrips relating to JS group faced thrashing triggered by negative news flows, as JSCL and ANL closed in the red zone. Better earnings for the quarter kept investors’ interest alive in cement twins LUCK and DGKC. The oil and gas sector remained under pressure, led by index heavy OGDC which broke the Rs 130 level. Although sentiments remained weak, quarterly results of a majority of the blue-chip stocks expected over the next couple of weeks could potentially invite reentry of bulls.
The support of leverage resistance was visible in stocks, offering consistent yields and likely to continue on the track of growth, thus allowing the turnover to exhibit slender improvement. Meanwhile, hand shift and stock swapping kept volatility on the higher side, allowing intra-day trading opportunities to market men.
Bleak economic, financial and social environment, along with CGT have certainly reduced the number of active participants at the local equity markets, while the government is trying to resolve various financial issues, mainly circular debt. It is essential to change the mode of CGT to allow the local bourse perform at its potential, said Hasnain Asgahar Ali at Aziz Fidhausein.
