Stocks gain 68 points in post budget announcement
The working of the week under review was affected by the announcement of Budget on 11th June evening while a day earlier Economic Survey painted a dismal picture of economy as growth slows to 3.3 percent.
The first day of stock exchange, Monday included all the negative aspects of economy and budget and stocks shed 938 points on tax concerns. Onwards, rest of the week there was a positive rally in the market and finally the stocks gained 68 points to close at 35,572.95 on Friday recovering all the lost points on Monday.
During the week the average volume was 136 million and market capitalization increased by Rs. 3 billion to close at Rs.7.151 trillion. The foreigners were seller by $5.05 million.
On Monday the investors were gripped under the fear of harsh budgetary measures and the stock declined 938 points to close at 34,567.55. The market continued to decline and at one time stood to 34,468.16 down 1037.13 points. Market lost the hope of stock fund under tax measures and the amount Rs.20 billion seems too small.
On Tuesday, the investors went for value hunting at such a low level. Also the arrest of Asif Zardari and Hamza Sharif leaders of the two major political parties spooked the investors. The news of arrest of MQM founder in London brings panic to the investors. However the volume increased from 92m to 117m and the market closed positive by 90.76 point at 34,659.85.
On Wednesday, the market after the announcement of Budget on Tuesday dipped by 52 points initially but then gained 477.71 points to finally close at 34,937.93 up 278.08 points.
On Thursday, the post budget session attracted buyers in cement, fertilizer and banking sector. The index gained 465.14 points to close at 35,403.07. The average volume improved to 154 million.
The buying spree continued on Friday and the market gained 67.86 points to close at 35,572,95. The verge volume improved to 168 million shares.
On average shares of 326 companies were traded. Of these 165 were gainers and 139 were losers and 24 remained unchanged.
Foreigners were net seller $5.05 million during the week; companies were buyer by $0.3m, Banks were buyer $2.31m; Mutual fund net buyer $2.7m and individuals net buyers $2.78m.
Volume leaders during the week were: K-Electric 39m; Maple Leaf Cement 37m; Bank of Punjab XD and TRG Pak Ltd 35m each; Fauji Cement 18 m; Pak Elektron 14m; OGDC 13m; Unity Foods Ltd 11m; Engro Polymer Ltd XD 7m; Fauji Foods Ltd 6m & Lotte Chemical 4m.
- Remittances jump 10.4 percent to $20.19 billion in July-May ’19 compared to the same period of last year.
- Keeping in view the increase of Rs,1.405 trillion in the tax collection target for the FBR, the government has introduced additional fresh tax measures worth Rs.568 billion inclusive of the tax exemptions amount.
- Rupee plunges to new low of around Rs,154. The dollar on June 3, was being traded at Rs.148.50 in the interbank where as on June 13 it was Rs.15,330.
In terms of Budget information, equity market still has to unfold implication of budget measures in coming few days.