KARACHI: After a negative start to the session on Thursday, the Pakistan Stock Exchange (PSX) once again went under the influence of bulls, as the indices that started the day in the red zone soon came back on track to end with decent gains.
Optimistic sentiments remained prominent amongst investors after post announcement of Federal Budget 2019-20.
The budget for FY20 has revealed an increase in both direct and indirect taxes. Inflation is estimated at a decade high level of 11-13pc in FY2020, which would gradually fall back below the current levels by 2022.
On the economic front, Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh said the distinction between filers and non-filers was being abolished in the federal budget to meet the desired expansion in the tax base. Moreover, Pakistani Rupee weakened against the US Dollar, hitting an all-time low in the interbank market at Rs152.10.
The KSE-100 index benchmark touched its intraday low of 34,858.14 as soon as the session commenced. It then took a U-turn to reach its day’s high of 35,501.37 in the afternoon session. The index closed higher by 465.14 points at 35,403.07. The KMI-30 Index surged by 1,086.65 points or 1.96pc to settle at 56,623.46, while the KSE All Share Index gained 238.86 points, ending at 25,836.16.
Trading volumes improved slightly from 150.98 million in the previous session to 154.32 million. Maple Leaf Cement Factory Limited (MLCF +4.69pc) topped the volume chart with 12.50 million shares exchanging hands, followed by The Bank of Punjab (BOP +2.66pc) and TRG Pakistan Limited (TRG +6.13pc). The scripts had traded 10.44 million shares and 9.45 million shares respectively.
The engineering sector gained 2.74pc in its cumulative market capitalisation. Reduction in general sales tax on electricity for steel melters was announced in the budget in order to reduce the cost of production. Moreover, federal excise duty would now be imposed on the tribal area manufacturers, as it would facilitate and encourage the players outside the tribal areas.
Amreli Steels Limited (ASTL) was up by +4.63pc, Bolan Castings Limited (BCL) by +3.60pc, Dost Steels Limited (DSL) by +5.82pc and Huffaz Seamless Pipe Industries Limited (HSPI) by +7.75pc.
