KSE-100 index closed this week at 13,558.7 points, down by 2.29%WoW, absorbing after-shocks of FY13 budget. Although budget was positive for the broader market, investors remained cautious over i) exclusion of decrease in gross turnover tax rate from 1% to 0.5% in the Finance Bill 2012, ii) increase in GIDC on the fertilizer sector, iii) lower than earlier expected decrease in FED for cement sector, and iv) increase in tax rates for banks on dividend income earned through money market/income funds. Sharp fall in commodity prices, particularly oil coupled with the weak PkR added to the sell-off during the week. In this regard, the week ended witnessed a massive foreign outflow of US$16.8mn compared with an outflow of just US$92mn the previous week. Furthermore, continued noise over the reopening of the NATO supply routes also amplified the negative sentiment. Lastly, statement by PML-N MNA challenging CGT ordinance in Supreme Court today further soured the sentiment. Avg. daily volumes were also down by 32%WoW to 95mn shares. Top gainers for the week included ENGRO (+1.7%; resumption of gas supply to Enven from Jun 10’12) and MEBL (+1.3%). Decliners list was headed by AICL (-9.4%), LOTPTA (-8%, no respite in budget FY13 coupled with falling margins), EPCL (-7.9%), NBP (-6.6%) and DGKC (-6.5%WoW).
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