PSX faces correction over CGT rate hike rumors

The Pakistan Stock Exchange (PSX) was hit by a strong wave of correction on Monday as investors decided to sell off their holdings amid rumors of hike in the rate of Capital Gains Tax (CGT) in the upcoming Budget 2016-17.

The Pakistan Stock Exchange's benchmark KSE 100-Index slumped by 1.25 percent or 459.57 points on Monday when compared with 36,694.26 points reported on Friday.

The KSE All Share Index sank by 1.01 percent or 251.29 points to 24,605.14 points, the KSE 30-Index plummeted by 1.55 percent or 330.25 points to 20,913.02 points, the KMI 30-Index slipped by 1.1 percent or 710.51 points to 63,657.28 points, whereas the Islamic All Share Index plunged by 0.84 percent or 144.69 points to 17,115.94 points.

During Monday's trading session, the main index moved in a broader range of 512.15 points as it touched an intraday high of 36,694.26 pointsFriday's closing pointas against an intraday low of 36,182.11 points.

Heavyweight stocks like Habib Bank Limited (HBL), MCB Bank (MCB), Fauji Cement Limited (FCCL), and Lucky Cement (LUCK) fell by 2.6 percent, 3.5 percent, 5 percent, and 2.7 percent, respectively, thereby contributing 193 points to the overall decline.

Hascol once again closed at its upper limit as its Board of Directors approved the establishment of a joint venture for developing oil storage and terminal facility.

Market volumes swelled by 2.73 percent or 5.462 million shares to 205.448 million shares on Monday when compared with 199.985 million shares posted on Friday.

Market capitalization reduced by 1.01 percent or 75.483 billion rupees (740.032 million U.S. dollars) to 7.391 trillion rupees (72.46 billion dollars) while on the other hand trade value decreased by 2.55 percent or 240.591 million rupees (2.358 million dollars) to 9.189 billion rupees (90.095 million dollars).

Among 380 active scrips on Monday, prices of 263 issues depleted, 99 managed to stay bullish, whereas values of 18 other companies stayed unchanged.

Karachi Electric Limited continued leading the list of most-traded companies with a trading of 22.718 million shares, followed by Kohinoor Spinning and TRG Pakistan Limited with turnovers of 15.738 million shares and 12.603 million shares, respectively.

Philip Morris Pakistan was the top price gainer with an increment of 80.6 rupees (79.01 cents) to 1,693.7 rupees (16.6 dollars) while on the other hand Colgate-Palmolive led the top price shedders with a decrement of 45 rupees (44.11 cents) to 1,480 rupees (14.51 dollars).

source : xinhua