Investors rushed to buy at the Pakistan Stock Exchange (PSX) on early Friday morning after the Prime Minster on Thursday announced a tax reform package. In an attempt to increase the number of tax payers and inflate the depreciating foreign reserves head of the state came up with a 5 point agenda. Market Analysts are assessing an inflow of between US$ 3 to 5 billion as a result.
The reforms include replacing the National Tax Number with the CNIC, rationalization of income tax bracket and reduced taxation rate on declaration of undeclared local and foreign assets, foreign exchange repatriation.
The KSE 100 index jumped 583.30 points in the first hour of trading and crossed the psychological mark of 47,000. In the same time the KMI 30 index surged 950.70 points. But the excitement was short lived and the KSE 100 index ended the first trading session with a gain of only 140.14 points at 46,700.96.
The benchmark index settled the last trading day of the week by an increase of 76.8 points at 46,637.62. The KMI 30 index stood higher at close of session by 228.13 points at 79,229.13 while the KSE All Share Index gained 135.12 points to close at 33,313.23. The advancers to decliners ratio stood at 168 to 150.
The market volumes for the day was recorded at 247 million shares traded with Engro Polymer and Chemicals Limited (EPCL; +2.06 per cent) as leader. The script had 16.3 million shares exchanged on the table. It was followed by Sui Northern Gas Pipe Line Limited (SNGPL; +2.93 per cent) and TRG Pakistan Limited (TRG; +1.60 per cent) with 12.9 million shares and 10.7 million shares traded respectively.
Largest market capitalization sector Commercial Banks remained in green with a 0.19 per cent gain while second largest sector, Oil and Gas Exploration Companies gained 0.27 per cent.
In a significant news, Jahanghir Siddiqui & Company Limited (JSCL; +5.39 per cent) touched upper circuit breaker as it announced a license granted to its wholly owned subsidiary JS Fuel (Private) Limited by Oil and Gas Regulatory Authority (OGRA) to operate as an Oil and Gas Marketing Company. The Oil and Gas Marketing sector is composed of heavy weight listed companies of the likes of Pakistan State Oil, Sui Northern Gas Pipe Line etc.