6,872
June 16, 2009The Karachi Stock market got another bashing today and made a low of 6,855. Breaking 6,800 will lead to further downside and there are no real positive triggers on the horizon until the new leverage product comes into play & a cut in interest rates. It could be time to reach for the proverbial Vaseline jar….
News : The Oil Marketing Companies (OMCs) have announced increase in furnace oil price by Rs 4,000 per tonne, dealers said. The OMCs on Monday officially announced changes in furnace oil price and started supply of furnace oil on new rates with immediate effect, they added. According to dealers, the companies including Pakistan State Oil, Caltex and Shell have announced increase of Rs 4,000-4,341 per tonne in furnace oil price. With the current surge, furnace oil price has touched Rs 39,500-40,000 per tonne in the local market… Aaj News
The following is an article well worth reading written by the Director of Financial Services Tax with KPMG in Ireland…. "Capital gains tax (CGT) exemption on shares should be rationalised and dividend distributions by companies should be exempted. CGT exemption on shares should be available only where shares are disposed of after being held for one year. This exemption should be proportionately reduced and capital gains derived on sale of shares disposed of after being held for less than 3 months should be taxed at full rate.
The above will discourage people from investing for short term and will induce them to hold shares for longer term. Consequently, it will bring only the genuine investors to stock exchange and will filter out those who are there to make money overnight. This will bring the much needed stability to stock exchange index movements which will then reflect the true state of the country’s economy….The way our stock market works, it is certainly not a barometer of investment. In fact the stock market in Pakistan is nothing but a sophisticated casino of the West; the only difference is that income earned in a casino is subject to tax… Daily Times
Market Low : 6,855.08 High : 6,953.09
Market Close : 6,872.96 — 80.13 points down
