Pakistan Stocks witness range-bound session, ahead of budget announcement

KARACHI: The Pakistan Stock market witnessed a range-bound session on Tuesday, with the benchmark 100-Index fluctuating within a narrow band amid uncertainty surrounding the budget announcement.

The index recorded an intraday high of 970 points and a low of 51 points, eventually closing at 122,024 — gaining 383 points or 0.32%.

Before the federal budget announcement, volatility is usually witnessed in the market, said Shaheryar Butt, CEO Darson Seucirites.

There were some rumors that there might be an increase in capital gains tax on the stock market, but apparently this does not seem to be true, Butt added.

Good vibes are not coming from the auto-sector, however if there is some good news about the construction sector it will boost the market, he went on to add.

The positive momentum was largely supported by strong performances from FFC, PKGP, BAHL, MEBL, and BAFL, which collectively contributed 499 points to the index.

Market participation remained healthy, with total traded volume reaching 591 million shares and a traded value of PKR 21 billion. CNERGY led the volume chart, with 61 million shares traded.

Despite National Electric Power Regulatory Authority (NEPRA) approval to write-off claims amounting to PKR 50.01 billion for the previous control period, K-Electric shares did not perform well on Tuesday.

KE had filed a petition for claims totaling PKR 76.1 billion for the same period under the Multi-Year Tariff (MYT) for FY2017 – FY2023.

In the last session before Eid holidays, PSX witnessed a volatility throughout the session, hitting an all-time intraday high of 122,281.58 points before profit-taking dragged down the Index.

The index had closed slightly lower by 157.86 points (-0.13%) at 121,641.

The market had closed lower after a report of IMF strict compliance on agriculture tax, tax collection opposing provincial energy subsidies.

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