The local bourse showed swift recovery following the Securities and Exchange Commission of Pakistan’s (SECP) lenience on the Capital Gain Tax (CGT), while the index heavy weight, OGDC, allowed the benchmark to register gains. Various dividend yielding stocks, well placed on the track of growth, invited cautious accumulation while sector and stock swapping spurred sell-off in high priced stocks.
The KSE-100 index closed at 11,930.24 points following a gain of 28.12 points, while total volume and total value stood at 42,306,370 and 1,304,547,365 respectively. The KSE-30 index accumulated 19.74 points and closed at 11,575.58 levels, while the All Share index closed at a level of 8,294.02 after a gain of 21.60 points. Among the 358 scrips, 150 progressed in terms of share price, 96 declined, while the residual 112 remain unchanged.
However, fresh conditions from the IMF regarding release of the reserve support fund added on to the already existing economic, financial and geo-political woes and, consequently, disallowed market men from participating on strength. Activity at the local bourse is likely to remain restricted amid the monetary policy announcement expected a week earlier. The tightening stance is anticipated to resume as depicted by sensitive indicators including rising inflation and high government borrowings. The top company’s award will keep the excitement regarding the CGT waiver or amendments alive and would, thus, offer chances of snap rallies. Caution, however, stays the call with dips to be capitalised in the stocks offering consistent yields and free from rising input costs, declining exports, gas curtailment, high debt portfolio and irking circular debt. However, positive vibes from the top company’s award ceremony might allow the activity in front line speculative stocks. Hasnain Asghar Ali at Aziz Fidahusein said that high quantum and positive activity is likely to support from resident participants, while availability of funds in MTS at as low as Kibor +1 will indeed offer extended wings to leverage players.
