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Pakistan Stock Exchange Sees Bullish Trend Amid Refinery and Tax Hike Speculations

Strategic Insights

— 1 min read

Market sentiment remains optimistic with the benchmark KSE-100 index closing at 119,931.45, a gain of 0.81 per cent, as investors anticipate government relief for oil refineries and a rise in tax collection. The government's plan to increase tax collection to 12.6 per cent of GDP is seen as a positive development, while the surge in global crude oil prices is also contributing to the rally.

Key Takeaways:

  • The benchmark KSE-100 index closed at 119,931.45, gaining 960.33 points or 0.81 per cent, with a total trading volume of 280.86 million shares.
  • Ahsan Mehanti of Arif Habib Corp attributed the rally to government assurances on tax relief for oil refineries, including sales tax exemptions and the unlocking of $6 billion in infrastructure upgrades.
  • The government's plan to increase tax collection to 12.6 per cent of GDP is expected to ease the fiscal deficit and improve investor sentiment.
  • Refinery stocks saw significant interest following the government's approval to clear Rs34 billion in pending dues, allowing the five refineries to begin $6 billion in upgrade projects.
  • Market participation remained strong, with traded volume reaching 667 million shares and the total traded value standing at Rs26.61 billion.

Statistics:

  • The KSE-100 index remained in positive territory throughout the session, hitting an intraday high of 120,106.21 and a low of 119,128.38.
  • Total trading volume on the KSE-100 index stood at 280.86 million shares.
  • Market participation remained strong, with traded volume reaching 667 million shares and the total traded value standing at Rs26.61 billion.
  • The main contributors to the index's rise were NBP, with a gain of 10 per cent, followed by BAHL, with a gain of 8.2 per cent.
  • The main losers were SCBPL, with a decline of 4.21 per cent, followed by TPLRF1, with a decline of 2.61 per cent.

Sources:

  • Ahsan Mehanti of Arif Habib Corp.
  • Topline Securities.
  • Post-trading note by Topline Securities.

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