The declining trend in international equity markets and the rising tension with the biggest donor did not allow the local bourse to gain positive momentum. In addition, uncertainties regarding the upcoming budget and monetary policy are likely to further tighten the situation.
Meanwhile, resident participants opted to reduce holdings, mainly in high priced stocks, and thus kept the benchmark under pressure. High discounts in various dividend-yielding stocks did restrict an unprecedented decline; however, low quantum disallowed louder impact while the market men focused on the meeting of local high ups and the visiting US dignitaries. Caution, thereby, was quite evident.
The KSE-100 index closed at 11,902.12 levels following a loss of 65.23 points. The total volume and total value stood at 32,699,979 and 1,032,671,118 respectively. The KSE-30 index shed 59.19 points and closed at 11,555.84 points, while the All Share index closed at 8,273.32 levels after a loss of 46.48 points. Among the total 359 scrips, 77 advanced 167 declined, while the residual 115 remain unchanged.
It is believed that the CGT implementation mode has pushed the turnover and essence of local equity market to sinking levels. Such reservations must be addressed in the Federal budget through the deductible tax for a full and final settlement of liabilities. Consequently, filing CGT return as optional can only allow the local funds to rediscover the fast losing charm of the local equity market, and any such move or even a slight rumor suggesting such a change can indeed allow the bulls to re-enter the arena.
Hasnain Asghar Ali at Aziz Fidahusein said that outcome of the talks might, however, dominate the proceeds, while availability of funds in MTS at as low as Kibor +1 still commits a swift increase in turnover. This is provided the proposed amendments are undertaken in CGT implementation mode, despite pressures from various fronts.
