US Consul General visits PSX
KARACHI: The Pakistan Stock Exchange (PSX) on Wednesday witnessed a bullish trend as KSE 100 index rose by 278.08 points (0.08%) to close at 34,937 points. A total of 113.574 million shares were traded, whereas the value of shares traded during the day stood at Rs 4.576 billion.
Out of 304 companies, share prices of 190 companies recorded increase while 87 companies registered decrease whereas 27 companies remained stable in today’s trading. The three top traded companies were Bank of Punjab with a volume of 18.5 million and its price per share decreased by Rs 0.21 to close at Rs 10, followed by MLCF with a volume of 9.961 million and its price per share increased by Rs 0.96 to close at Rs 22.06 and KEL with a volume of 7.488 million and its price per share decreased by Rs 0.03 to close at Rs 4.34.
The top advancer was AGSML with increase of Rs 1.00 (39.22%), closing at Rs 3.55 followed by HWQS whose per share price also increased by Rs 1.00 (34.6%) per share to close at Rs 3.89. The top decliners were DWTM with the decrease of Rs 0.42 (32.5%) per share, closing at Rs 1.08 and PPVC with the decrease of Rs 1.00 (17.83%) per share to close at Rs 4.61. Meanwhile, United States’ Consul General to Karachi, JoAnne Wagner on Wednesday visited the Pakistan Stock Exchange (PSX) and opened trading for the day at the exchange by ringing the Gong (bell). Pakistan Stock Exchange (PSX) Chairman, Sulaiman Mehdi welcomed the U.S. Consul General and her Consulate team, said a Pakistan Stock Exchange (PSX) press release on Wednesday.
The Pakistan Stock Exchange (PSX) Chief apprised the U.S. officials of the steps taken by the bourse for the development of Pakistan’s capital market. He said that the foreign institutional portfolio investors held substantial holdings of free float shares of listed companies on Pakistan Stock Exchange (PSX).
The U.S. delegation lauded the efforts of Pakistan Stock Exchange (PSX) in providing a conducive and safe environment for investments not only to the locals and non-resident Pakistanis, but also to foreign investors. Pakistan and the United States enjoy a long-standing historical and multi-faceted relationship in areas such as energy, trade, FMCGs, construction, chemicals, transportation, communications, and counter-terrorism. Meanwhile, Business leaders gave the budget mixed reviews.
Some hoped money destined for real estate will now flow into stock markets after the government made it a crime to not pay taxes when buying or selling property. Plans to widen the tax net and separate tax policy from revenue collection also won support. But analysts were sceptical of a forecast 25pc increase in federal tax revenues to Rs5.55 trillion ($36.8 billion). “I see it as being positive from a business perspective,” said Ehsan Malik, chief executive of the Pakistan Business Council which represents 60 major businesses.
However, he said a plan to withdraw tax incentives for export sectors such as textiles, leather goods and surgical equipment could deter investment. Hafeez Shaikh, a government adviser who is the de facto finance minister, said the changes to collecting taxes on exports were modelled on those used by Bangladesh, which has surged ahead of Pakistan to become a regional export powerhouse. “We have to collect our taxes, if Bangladesh and other counties can collect taxes, why shouldn’t we,” Shaikh told reporters on Wednesday. He said the provisional IMF agreement would go before the global lender’s board in Washington in two to four weeks.
Some analysts doubt the government will achieve its ambitious revenue collection targets. Though spending on civilian programmes was cut, the budget included a 5pc budget increase for the military. “The government is unwilling to tighten the belt nor does it have a credible plan to raise tax revenues,” said Yousuf Nazar, former head of emerging market equity investments at Citigroup and author of a book on Pakistan’s economy.— News Desk