13,237 - yet another record close
June 7, 2007
The KSE-100 index was a choppy ride today with an intra-day high of 13,312 and a low of 13,181 closing up at 13,237. PSO roared up to close at its upper limit at Rs.403.05 based on news of a pre-bid meeting coming soon (see below). and United Bank Ltd made a new record close at its upper limit at 218.40. 2moro’s pre-budget "Friday Show'’ is anyone’s guess whether the market will get bashed, remain stable or close higher. The Karachi Stock market is quite overbought with a RSI-14 of nearly 80. The next upward resistance is 13,332 followed by 13,400, and the downside could see 13,130 to 13,000.
News : After the Sindh High Court’s judgement, the Privatisation Commission on Tuesday conveyed to short-listed parties on the telephone that they should get ready for pre-bid meeting on Pakistan State Oil (PSO) sell-off at a short notice. The pre-bid meeting would be the second last leg as it would be quickly followed by bidding to complete the transaction…. Selling PSO in the current fiscal year would ease pressure on the government forcing it for massive domestic borrowing. The State Bank of Pakistan (SBP) has already cautioned that the government policy of borrowing over and above the budgetary estimates can be problematic…. Aaj News
Yielding to a major demand of the textile sector, the government has withdrawn Presumptive Tax Regime (PTR) and reduced income tax on export proceeds from 1.25 percent to 0.5 percent under the normal income tax law…Under the new arrangement, the CBR would carry out normal income tax assessments of the textile companies under the Income Tax Ordinance, 2001. Second, the income tax at the rate of 0.5 percent would be applicable to the export proceeds of the textile companies. Third, a 100 percent depreciation allowance would be available on machinery and equipment from July 1, 2007… Aaj News
Upper Caps : Pakistan State Oil Ltd. / United Bank Ltd
Market Low : 13,181.84 High : High : 13,312.83
Market Close : 13,237.68 – 25.58 points up
