KARACHI, January 20, 2019: The KSE‐100 index closed in the green last week, for the third consecutive week, gaining 258 points or 0.7 percent to closing at 39,307 level as finance minister assured market participant that the upcoming mini budget will also include some good news for stock exchange and brokers.
That good news might be reduction or elimination of advance tax of 0.2 percent on brokers, carry forward of capital losses along with other measure, which boosted investor confidence. Furthermore, the positive impact of visit of Saudi energy minister and their plan to set up a USD10bn oil refinery in Pakistan.
On the flipside, concern over economic progress and availing IMF bailout Package remain the major anxieties among investors thus trading activity was remained dull.
Positive sentiments were driven this week by the possibility of 3rd budget of FY19 which is expected to reduce/eliminate advance tax of 0.2% on brokers, rationalize group taxation system, ensure ease of doing business and reduce input cost for export oriented sectors.
According to weekly stock with the possibility of GIDC Resolution (50% waiver) on the cards, the fertilizer sector is expected to benefit the most. Resultantly, it was the best performing sector of the week as it added 135 points. It was followed by the E&P and Tobacco sector which added 80 points, cumulatively.
Foreigners selling for the week was $9.42 million vs. net buying of $0.6 million in the previous week. Among local investors’, Individuals and Mutual Funds were net buyers of $11 million, cumulatively.