KARACHI: Pakistan equities cheered the Supplementary Budget to close at 40,289 points level, up 231 points.
This positivity came after the government announced the second supplementary budget withdrawing critical taxes on capital markets, lifting the ban on purchase of vehicles by non-filers of income tax returns and facilitating industry, agriculture and small and medium enterprises (SMEs), said an equity analyst Maaz Mulla.
Financials took the lead in Thursday’s gains with Habib Bank Limited (HBL) gaining 2.35 percent, MCB Bank Limited (MCB) gaining 2.59 percent and United Bank Limited (UBL) gaining 1.20 percent collectively contributing 115 points in the Index on reported foreign buying despite the increase in taxation on the sector.
Cement sector also posted a rebound with Lucky Cement Limited (LUCK) gaining 2.07 percent, DG Khan Cement Limited (DGKC) gaining 2.32 percent and Maple Leaf Cement Limited (MLCF) gaining 3.17 percent garnering interest as, contrary to news reports, previous day’s Budget did not increase the Federal Excise Duty (FED) on the sector.
Auto Sector, on the other hand, posted mixed performance despite being the key beneficiary of the change in government stance announced yesterday.
Pak Suzuki Motor Company (PSMC) gaining 5.0 percent continued with its winning streak as non-tax filers would now be allowed to purchase cars up to 1,300 CC while profit taking was observed in Honda Atlas Cars Pakistan Limited (HCAR) losing 4.53 percent – till Thursday, the stock had already gained over 42 percent from its January-2019 lows on change in import policy and anticipation of favorable announcements in the Budget.
Overall volumes increased by 37 percent from the previous trading session, while in value terms the same increased by 34 percent. Thursday’s major volume leaders were PIBTL (+7.2%), BOP (0%) and PAEL (-2.2%). Major contribution of +195 points came from HBL (+2.4%), MCB (+2.6%), PPL (+1.6%), LUCK (+2.1%), ENGRO (+0.9%) and UBL (+1.2%).
