PSX plunges 937 points ahead of budget
The Business Report
LAHORE: Bearish sentiments surrounded the bourse on Monday with the KSE-100 index benchmark dipping by 937 points, as investors adopted a cautious approach ahead of the announcement of the Federal Budget 2020.
On the economic front, the US dollar regained Rs2.24 against the Pakistani Rupee in the interbank market during the opening hours and was traded at Rs151.24. On the political front, the Islamabad High Court rejected former president Asif Ali Zardari’s application for an extension in his pre-arrest bail. Losing over 3.01pc, the KSE-100 index declined to its intraday low of 34,468.16. It ended the session lower by 937.74 points at 34,567.55. The KMI 30 index sunk by 2,016.71 points or 3.57pc to end at 54,515.12, while the KSE All Share index depreciated by 542.14 points, closing at 25,350.62. Out of 305 traded scripts, 56 advanced, 228 declined while the value of 21 remained unchanged.
Trading volumes remained low in the first session after holidays and were recorded at 91.74 million. K-Electric Limited (KEL +4.40pc) was in the lead with 18.53 million shares exchanging hands, followed by The Bank of Punjab (BOP -5.45pc) and Unity Foods Limited (UNITY -8.30pc). The scripts had traded 7.33 million shares and 4.31 million shares respectively.
According to a notification sent by the PSX, the board of directors of Crescent Steel & Allied Products Limited (CSAP +2.75pc) have approved the amalgamation of Crescent Hadeed (Pvt) Limited and CS Energy (Pvt) Limited with and into CSAP (parent company). The date of amalgamation is June 30, 2019. The cement sector lost -4.92pc from its cumulative market capitalization. DG Khan Cement Company Limited (DGKC -4.99pc) and Maple Leaf Cement Factory Limited (MLCF -4.99pc) nearly touched their lower locks, while Bestway Cement Limited (BWCL -4.92pc), Lucky Cement Limited (LUCK -4.75pc) and Kohat Cement Company Limited (KOHC -4.91pc) also closed in the red zone.
RCCI shows concern on
economic survey results
The Rawalpindi Chamber of Commerce and Industry (RCCI) has shown grave concerns on Economic Survey results and fear for further harassment from FBR in upcoming fiscal budget 2019-20. Addressing a media conference at chamber house on Monday, the RCCI President Malik Shahid Saleem said it was a surprise and very distressful that Government missed all key economic targets.
The GDP growth target was 6.3pc set by the previous government and survey shows that Pakistan’s economic growth in the financial year ending in June is expected to hit 3.3 per cent, well below the target of its target.
The big blow was witnessed in the industrial sector that registered a growth of 1.4pc against the target of 7.6pc, the large scale manufacturing (LSM) showed a negative growth of 2pc against the target 8.1pc. and the service sector grew by 4.7pc against the target of 6.5pc, while the construction sector achieved the growth of 7.6pc against a 10pc target.
Malik Shahid Saleem said that Government has set 5500 billion revenue target which is very unrealistic keeping the fact that it already facing short fall of 400 billion. This is very concerning and we expect more harassment towards tax payers as Government had planned to squeeze existing tax payers by imposing 200 billion of new taxes.
RCCI president said that it was the first time that Government authorities have not involve key stakeholders in consultation process. The federation and all chambers of commerce wil