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Turmoil, corporate tax drag index into red zone

Turmoil, corporate tax drag index into red zone

KARACHI: With the political noise getting a bit louder, the trading on the stock market started on a negative note on Tuesday. Investors were further discouraged by the finance minister’s announcement that a one-time extension in the super tax at 4pc for the new financial year was on the cards.

The KSE-100 index tanked to intra-day low by 247 points. However, as panic subsided, most investors preferred to wait and watch which helped the index bounce back to close down by 54.98 points (0.16 per cent) at 33,684.56.

Traded volume declined 21pc to 171.3 million shares while traded value dropped 25pc to Rs6.5bn. Foreign investors were net sellers of stocks worth $0.57m on Monday.

Engro Fertiliser gained 0.6pc, while Adamjee Insurance fell 0.3pc after its quarterly results.

“Banking sector was a major laggard due to depressed banking sector spreads for the month of March 2016 as UBL dipped 1.84pc, HBL 0.78pc and MCB Bank 0.55pc,” stated analysts at JS Global.

Also, profit-taking continued in the cement sector, where LUCK was down 0.75pc. On the other hand, mixed sentiments prevailed in the oil and gas sector as global crude oil prices retreated by about 1.5pc from its high over the weekend.

Dealers at Global Securities commented that the market bounced back soon after it touched its strong support level of 33,500. PPL jumped 3.46pc, PKGS 5pc and MARI 4.23pc supported the index but that was not enough to counter the negativity within the market.

“Major contribution to downside on Monday came from UBL, NESTLE, HBL, FFC and KTML,” said dealers at Intermarket Securities. Although WTI traded in the red throughout the session yet OGDC, PPL and MARI managed to close in the green.

Courtesy : Dawn News



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