Karachi: The market was flat on Friday. According to Taurus Securities Limited, the KSE-100 shed 2 points to close at 11,262 on the back of 53m shares exchanging hands. Most of the activity was concentrated in the Chemicals, Banks, Personal goods, and Electricity sectors. The top gainers according to Index points were HBL, ABL and NBP; likewise the top decliners were NESTLE, ULEVER and OGDC.
Taurus Securities advises investors to accumulate on dips.
Inside: AUTO UPDATE: Auto Sales Rev up for July 2011
Proposed SECP Act 2010 seeks effective regulation: The proposed Securities and Exchange Commission of Pakistan Act 2010 seeks to ban the activity of any person on the grounds that his regulated activity is not in the interest of financial services market or investors.
Plan to reduce income tax rate for listed companies: The government plans to reduce income tax rate from the existing 35 percent to 25 percent for listed companies, show official documents. Sources said this step is being taken to motivate new equity listings.
Five groups formed to boost tax revenue: Finance Minister Dr Hafeez Shaikh on Friday constituted five working groups to evolve strategies for bringing potential sectors into the tax net, achieving revenue collection target and minimizing corruption in the country’s top tax machinery.
Govt set to impose Rs200 bn new taxes on energy sector: Preparations are continued to impose Rs200 billion new taxes on the energy sector and end consumers will have to face burden of new proposed steps aimed at ending the circular debt. Sources said the Petroleum and Natural Resources Ministry had proposed imposition of Rs5 to Rs7 per kg development tax on CNG and an increase in this tax on LPG. Sui Southern Gas Company and Sui Northern Gas Company have also proposed increase in development tax.
Rs3.9b provided to acquire land for Diamer Bhasha Dam: The federal government has provided Rs3.9 billion to Gilgit-Baltistan and Khyber Pakhtunkhwa authorities to acquire land for construction of country’s most vital project- Diamer Bhasha dam. The process of acquisition of land is continuing and after its completion, work would start which is expected most probably by end of this year.
Quarterly basis: gas prices may be raised by 13-15 percent: The government intends to raise the gas price by 13 to 15 percent on quarterly basis, with the objective of bringing gas price at par with alternative fuels, like petrol, diesel and furnace oil, officials said. Officials in the Ministry of Petroleum and Natural Resources told Business Recorder that the recent increase in gas prices for all sectors, excluding fertiliser sector, was the first step in this direction.
Petroleum products: Decision on deregulating freight margin withdrawn: The government has decided to withdraw the decision on deregulating inland freight equalization margin (IFEM) on petroleum products, a move that would have led to different oil prices across the country, after facing strong opposition and criticism of political groups.
‘Petroleum policy 2011′ draft to be put up in next ECC meeting: The Ministry of Petroleum and Natural Resources has prepared ‘petroleum policy 2011′ to cope with persisting energy crisis, according to which, gas production price would increase by $5.7 per million British thermal unit (MMBTU). Sources at the Ministry of Petroleum and Natural Resources said that draft of the ‘policy’ would be presented in the next meeting of the Economic Co-ordination Committee.
Land transfers to Etisalat: The Ministry of Finance has issued a Letter of Comfort to provinces, assuring them of releasing their money immediately after the government gets the remaining $800 million from Etisalat, said a senior official on Saturday.