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Wednesday, 12 September 2012

STOCK MARKET UPDATE: 13.09.2012



STOCK:
Karachi Stocks Up 55.45 Points:
KARACHI, Sept 13: The KSE-100 index was at 15333.93, up 55.45 points. Today @11.17 am)

September 12, 2012
5 TOP GAINERS  &  LOOSERS:

Siemens Pakistan
Rs 40.00
Bata (Pak)
Rs (50.00)
Shezan International
Rs 11.58
Abbott Laboratory
Rs (10.38)
Linde Pakistan
Rs 7.08
National Foods
Rs (7.55)
Pak Oilfields
Rs 4.66
Pak Gum & Chemical
Rs (5.56)
Thal Limited
Rs 3.74
Mitchells Fruit
Rs (4.99)
KSE 100-index posts 64 points
KARACHI, Sept 12: Stocks recovered on Wednesday with the KSE-100 index recording a gain of 64.46 points to close at 15,278.48 points. After the two-day early week declines, shares set out on Wednesday on a firm footing, as savvy investors seized the opportunity to collect low-valued, high growth, high yield stocks in several sectors.
The rally was, however, led by the heavy weight OGDC, which set the tone with a gain of Rs2.25 in stock value so as to add as many as 42 points to the index rise. The share was buoyed by the government’s follow up of its plan to issue Term Finance Certificates of Rs82 billion, subscribed by OGDC to partially settle the nagging circular debt issue.
It was hoped to provide breather for the energy sector companies. OGDC income, going forward, was thought to be augmented by the interest income.
Trading volume improved 14 per cent to 176 million shares on Wednesday, from 154 million shares the day before. But it was the trading value that took a sharp upturn to Rs4.998 billion, from Rs4.081 billion.
Market capitalisation saw addition of Rs16 billion to Rs3.893 trillion on Wednesday, from Rs3.877 trillion the previous day.
Equity traders said that the volume could have been even higher but many market participants had little inclination to trade as they grieved along with the nation for heavy loss of life in the factory fire incidents.
Foreign investors purchased shares of the value of $0.15 million on Wednesday. Except the mutual funds which offloaded equity worth $3.03 million evidently to book profits, the rest of institutional investors were net buyers.
Companies bought shares worth $5.15 million, banks made net purchases of $2.65 million. But individuals generally stayed on the sidelines with net purchases of only $0.06 million.
Equity dealer, Samar Iqbal at Topline Securities stated that in addition to the OGDC, other oil and gas exploration companies
also gathered strength.

Hasnain Asghar Ali, COO at Escorts Capital stated that the Moody’s stance of maintaining negative outlook for the local banks mainly due to high exposure on government securities sent negative signals.
Yet the low price to book value restricted any major losses in the share prices of the banking sector, as investors thought leading banks would shift from government securities to consumer lending in an era where benchmark interest rates are on the slide.
Analyst said that the economic, political and law and order issues and the upcoming judicial hearings continued to signal caution. However, low trading multiples were expected to tempt fresh liquidity into the equity market.
In all, 318 stocks came up for trading on Wednesday. Gainers at 157 outnumbered losers at 144, with 17 scrips closing at their previous level.
The biggest gainers and losers were again the high-priced illiquid stocks. On the plus side, Siemens Pakistan was up by Rs40 to Rs940, followed by Shezan International higher by Rs11.58 to Rs243.25. On the declining side, Bata (Pak) Limited lost Rs50 to Rs950 and Abbott Lab decreased by Rs10.38 to Rs197.44.
Traded volume was formed mainly of mid cap stocks. On the volume leaders’ list, PTCL continued to stay on top with 30 million shares, down by 25 paisa to Rs18.56. It was followed by KESC, which declined by 32 paisa to Rs7.18 on 19 million shares.
Pace (Pak) gained 21 paisa to Rs3.62 on 17m shares. Hub Power Company, trading spot, showed a sizeable gain of Rs1.41 to Rs49.59 on 13m shares, Nishat Mills also rose by Rs1.46 to Rs57.45 on 6m shares, Maple Leaf Cement was up by 12 paisa to Rs9.16 on 5m shares.
WorldCall Telecom lost 17 paisa to Rs2.94 and Telecard slid by 9 paisa to Rs3.11 on 5m shares, in sympathy with PTCL, the biggest telecom stock. After heavy initial gains, cement share DG Khan up 44 paisa to Rs48.83 on 5m shares. Jah Sidd Co slipped by 10 paisa to Rs13.98 on 3m shares.

CGT rules on securities
ISLAMABAD, Sept 12: The Federal Board of Revenue (FBR) on Wednesday issued Capital Gains Taxation (CGT) Rules on Securities’ Trading incorporating all amendments proposed by the Securities and Exchange Commission of Pakistan (SECP) to facilitate investors of the country’s stock exchanges.
The provisions of the new CGT rules will be applicable from April 24, 2012. Following the request of the SECP, FBR made the necessary changes in CGT rules to smooth the process of collection of CGT from stock market investors.
SECP had recommended certain changes in CGT rules for documentary trail of undocumented income, correction of anomaly where exempt gains in past were not documented, higher revenue for the government, broadening the tax-base, depth in trading volume, efficient price discovery, efficient capital formation and resource allocation, higher possibility for privatization and attraction of foreign portfolio investment.
Taking into account the suggestions made by SECP, FBR was able to finalize the viable CGT rules which have now been notified by the tax authorities.
Sources said that the issuance of these rules and amendments to the Income Tax Ordinance 2001 were made to remove the anomalies identified in the previous CGT regime. The matter was raised by SECP keeping in view the difficulties faced by investors while complying with the taxation provisions. New amendments have been introduced with the collaboration with FBR, NCCPL, CDC and other stakeholders.
These changes are expected to have a positive effect on investors’ confidence, stock market trading volumes and should ensure 100 per cent collection of tax on securities’ trading, sources said.
FBR issued amendments to the Income Tax Rules 2002 relating to the Capital Gain Taxation (CGT) on securities’ trading vide SRO 1119(I)/2012 dated September 12, 2012.
MOHAMMED SALEEM MANSOORI

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