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Thursday, 26 July 2012

STOCK MARKET UPDATE:27.07.2012



STOCK:

Karachi Stocks Down 11.39 Points:
KARACHI, July 26: At the close of trading, the KSE-100 index was at 14553.29, down 11.39 points.

July 25, 2012
5 TOP GAINERS  &  LOOSERS:

Wyeth Pak
Rs 33.62
Sanofi Aventis
Rs (7.02)
Mithchells Pak
Rs 14.29
Al Abbas Sugar
Rs (4.70)
Shezan Int’l
Rs 10.31
Al Noor Sugar
Rs (2.79)
National Foods
Rs 10.12
National Refinery
Rs (2.48)
Abbott Lab
Rs 7.48
Pak Datacom
Rs (1.99)
Karachi Stocks Dawn 11 points in directionless trading
KARACHI, July 26: Stocks slipped on Thursday with the KSE-100 index down 11.39 points to 14,553.29 points. Volume in terms of shares increased by 42 per cent to 81 million shares, from 57 million shares traded the day before.
Yet trading value was slightly higher by Rs305 million to Rs2.961 billion, from Rs2.557 billion. Investors played on both sides of the fence, as the market lacked triggers and remained in search of direction.
The great expectations on upcoming corporate results made investors hold on to the high dividend yield stocks. Yet the worries over judicial pronouncements, though postponed for two weeks remained at the back of investors’ mind.
There was no urgency on the part of investors to take firm positions on either side, which led to low volatility of just around 70 points, the index high at 14,617.43 points and low at 14,547.77 points and a change of less than Re1 in prices of most of the 10-top volume leaders.
Foreign investors continued to buy albeit at a lower pace; the net purchase at $0.35 million on Thursday. Among other class of investors, Companies went into heavy buying of $4.08 million worth stocks and individuals also picked up stocks valued at $2.52 million.
Samar Iqbal, equity dealer at Topline Securities said that the market saw mixed activity in spite of positive news flow. Reduction in T-Bill yield and likely reimbursement of $1.1 billion by US did not have any major impact on the share prices.
Ahsan Mehanti at Arif Habib Corp observed that activity remained thin despite strong corporate earnings outlook and recovery in global stocks and commodities. Concerns for rising circular debt in energy sector, revenue loss to fertiliser sector on gas supply worries played a catalyst role in bearish sentiment at KSE, he said.
Hasnain Asghar Ali, COO at Escorts Capital, said that the front line stocks witnessed technical reshuffle and future switching. The sidelined participants awaited deeper discounts for placements.
Volume leaders’ negative outlook stayed prominent but the exchange of healthy volumes on decline, and hefty volumetric trade in JSCL and DGKC, besides allowing increase in overall turnover, kept day traders poised for intra-day trading activity.
He mentioned that the upcoming corporate announcements, eased up temperatures on political front and the likely visit of delegates from neighbouring countries would continue to produce short term triggers, along with receipt of funds from US, which was hoped to soothe macro economic numbers.
Although concerns on political front and judicial decisions could trigger volatility going forward, low multiples and healthy cash payouts could help limit the downside. The low volume due to Ramazan and overlapping roll-over period might however continue to restrict turnover for upcoming sessions. In case of improvement in volumes, intra-day activity could take place in frontline stocks.
The KSE-30 index shed 40.38 points to 12,592.74 points. Market capitalisation decreased by Rs1 billion to Rs3.714 trillion, from Rs3.715 trillion the previous day.
In all, 270 stocks came up for trading on Thursday, with 114 gainers; 133 losers and 23 maintaining old values.
The volume leader list showed Hubco at first place with 12m shares down 6 paisa to Rs43.10.
Jah Sidd Co added 63 paisa to Rs16.22 on 11m shares, D.G. Khan Cement was up by 16 paisa to Rs45.47 on 6m shares, JS Growth Fund edged higher by 5 paisa to Rs8.20 on 3m shares and Lucky Cement lost Rs1.45 to Rs128.89 on 3m shares.
Bank of Punjab rose by 22 paisa to Rs8.82 on 3m shares, JS Investments climbed by 32 paisa to Rs9.73 on 2m shares, Askari Bank rose 9 paisa to Rs15.59 on 2m shares, NBP slid 10 paisa to Rs45.84 on 2m shares and Bank Alfalah shed 6 paisa to Rs17.98 on 2m shares.


Draft amended: NCCPL to collect CGT
ISLAMABAD, July 26: The Federal Board of Revenue (FBR), in an amended draft of Capital Gains Tax, has authorised the National Clearing Company of Pakistan Limited (NCCPL) to collect tax made on profit during the purchase and sale of shares at the capital markets.
NCCPL will also be responsible to deposit the tax collected to the FBR as opposed to previously where investors were liable to deposit the Capital Gains Tax (CGT) themselves.
“The main point of this new amendment is that the major emphasis is on automation, and human interaction has been minimised with regards to the collection of CGT,” an FBR official said, in hopes of increasing CGT collection.
The amended draft is available on FBR’s website and the public is encouraged to give its feedback by August 3.
“If any serious kind of objections are not received that the authorities have overlooked, the ordinance is expected to be notified by the end of August 2012,” said an FBR official.
Under the new regime, to compute the CGT, transactions and their corresponding values with NCCPL, stock exchanges and the Central Depository Company of Pakistan Limited will be taken into account.
The CGT collection during 2011-12 was around Rs445 million, and the officials accounted the low collection due to the self-filing regime, in which most investors did not pay their CGT.
The draft law on the FBR website stated that, “these rules shall apply to capital gains derived from listed securities on or after the April 24, 2012.”
The CGT rate would remain the same; 10 per cent capital gains tax will be imposed on profits made from stocks sold within six months of purchase and eight per cent on stocks sold between 6 months to a year. CGT will not be applicable for shares that have been held by investors for over one year and the base of computation will be from April 24, 2011. Officials said the time of holding the stocks will be calculated from April 24, 2011 for shares sold after April 24, 2012. A FBR official said that the collection procedure had been simplified to “A-B”, which is the purchase price minus sale price.
The draft law also highlighted that ‘capital gain or loss arising on the disposal of listed securities shall be computed on the basis of FIFO method.”
There has been confusion among investors over the timing of the sale of a stock as they maintained that shares that they had sold were of the same company’s shares they had bought earlier.
“Under the new regime, scrip of the same company would be counted as one entity and the same number of shares purchased on the first date would be taken for computing the CGT,” according to the FBR official.

MOHAMMED SALEEM MANSOORI

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