KARACHI: Pakistan stock market came under correction again after a three-day rise. The market came under profit-taking due to an increase in prices that provoked investors to book some gains before fresh investments. Traders and analyst expect the market to regain upward trend in the next session.
Karachi Share Index (KSE-100) ended the day 154.68 points (0.32 percent) down at 48,147.98 points against the previous closing of 48,302.66 points. The market went as high as 48,409.66 points during intra-day trading, while recorded as low as 48,000.17 points.
Trading volumes increased to 1.04 billion shares today, as compared to 936 million shares yesterday, while the daily traded value fell to Rs23.9 billion from Rs 27.6 billion in the previous session, the data said.
The market started the day positively; however, the selling pressure pushed the index negative within the first 15 minutes of the trade. Despite several attempts of recovery overall movement remained range-bound.
Traders and analysts term the intra-day correction healthy as it will prove positive for strengthening the market. The flow of positive news for the market and also at the economic front may trigger fresh buying in the next session. The market to regain upward momentum fast as there are hopes related to budget developments and corporate announcements ahead, they added.
The federal government is mulling a 3 percent reduction in the Capital Gains Tax to facilitate the Pakistan Stock Exchange in the budget for the upcoming financial year 2021-22.
If reduced, the traders will have to pay a 12 percent tax on capital gains instead of 15 percent. The government may also increase the time period for the capital gains tax payment to two-three years.
This development came a day after a meeting between the Pakistan Stock Exchange (PSX) managing director and Finance Minister Shaukat Tarin in Islamabad to review the budget proposals.
The share price of Nestle Pakistan increased by Rs69.52 to Rs5,776.19 while Rafhan Maize gained Rs65 to Rs9,790. On the other hand, Unilever Foods lost Rs699 today to close at Rs16,500, while Wyeth Pakistan Limited lost Rs182.57 to close at Rs2,251.82.