KARACHI: Markets ended last day of the week on a positive note gaining 62.6 points (0.16 per cent) before touching an intraday high of 147 points to finally settle at 36,306.50.

The sentiment was lifted by reports of government planning to announce ease of doing business measures in the mini-budget to be presented on Wednesday. Initial reports suggest the government is likely to rationalise capital gains tax, reduce or abolish advance tax on brokers and allow capital losses to be carried forward for up to three years which are expected to be net positive for the capital markets.

According to figures released by the National Clearing Company of Pakistan, foreigners emerged as net sellers offloading $1.65 million. However, local buyers increased their positions by equal amounts raking up $1.65m with brokers increasing their positions by $0.65m and mutual funds $0.7m.

The market dipped at the outset but reversed during the second half to consolidate gains. The volume jumped 48pc day to 154.8m shares traded whereas the value traded declined by 5pc to $36.8m.

Amongst stocks that contributed significantly to the day’s activity, around 56m shares of K-Electric were traded (accounting for 36pc of the total) on the expectations of sale deal going through with the Shanghai Electric, followed by TRG Pakistan, Unity Foods, Pak Elektron and Sui Southern Gas Company Ltd.

Sector-wise, exploration and production, banking, cement and oil and gas marketing companies were under selling pressure however, positive contribution during the session was led by fertiliser, adding 45 points, power 29 points and chemical 11 points.

Major gainers were Fauji Fertiliser Company, up 1.2pc, K-Electric 5.1pc, Engro Polymer and Chemicals 3pc, Honda Atlas 4.9pc. On the flip side, losers were Nestle Pakistan down 2.5pc, Pakistan Petroleum Ltd 0.4pc and Lucky Cement 0.6pc.

Published in Dawn, January 19th, 2019