PSX closes on negative note on second consecutive session
Last updated on: 18 December,2018 06:47 pm
Rupee on other hand moved upward but with the velocity was miniscule
KARACHI (Dunya News) – The stock market for the second consecutive session closed on a negative note on depressing foreign investors’ numbers for the period of five months of the current fiscal year registering substantial declines sending negative vibes to domestic investors.
The beginning at the equity market was not different and following the commencement the market landed in the negative column where volume was also thin as all the investors waiting for some positive news to cheer the mood of the investors.
The market registered fresh declines after the State Bank of Pakistan on Monday released foreign investment numbers for the five months ended November 30, 2018. The foreign direct investment recorded a decline of 35 percent to $881 million while portfolio investors were net sellers of equities amounting to $331 million, which was a fresh blow to sagging mood, said an analyst.
KSE-100 index closed at 38115 points, showing a loss of 193 points. “Without conducive environment thereby increasing ease of doing business & reducing Cost of doing business – volume generation is not possible and without generating volumes it is not possible for any of the stakeholder to survive be it, PSX, SECP, FBR or stock brokers”, said Adil Ghaffar, CEO of First Equity Modaraba.
He said that volumes were drastically reduced when last year government increased Advance Tax from 0.01 percent to 0.02 percent. Gross tax incidence is 33 percent and Net tax incidence is 67 percent as commission is based on quantity whereas tax is based on value.
Rupee on other hand moved upward but with the velocity was miniscule. Dollar rose one paisa to close at Rs 138.93, in the last two session greenback surge by four paisa. While in the open market it behaved differently and recorded a slide of 50 paisa to Rs 138.80. The main reason for the slide was selling from some of the investors as they believed that now the dollar wont go up from this level.
Some of the experts opined that the dollar has found its level and it will show any movement following the government signing with the IMF for the rescue package.