Under the proposed amendments in the Finance Bill 2010, the FBR would allow the small investors to file annual returns to facilitate these individual investors. In another move to facilitate demutualization of stock exchanges, the income tax exemption would continue on transfer of assets of stock exchanges to de-mutualized exchanges. This one-time exemption would be available to the stock exchanges under the amended Finance Bill.
As per the media sources“Karachi Stock Exchange (KSE) is showing steady performance during the last one week. The market has not witnessed any downward trend during the past one-two weeks. Presently, there is no abnormal situation in the stock market as market players are fully prepared to accept the CGT. Well this is not true if you look at the volumes in the market; most of the local investors are sidelined, and not really interested to enter unless they see any concrete reasons for getting in.
Future Outlook:
The KSE-100 index and the listed companies of KSE are striving hard to maintain their weight, in last couple of sessions it is observed that despite of CGT related issues market manage to move upward and got back in a secure channel, and now started moving range bound, which is clearly indicating most of the players are gear up to accept the CGT.
On the other hand low volumes reflecting the least interest of the local investors, today’s initial hype was also having a little impact of yesterday’s institutional buying. But unfortunately the excited figures weren’t able to appreciate the volumes in market.
So under the prevailing situation our stance will be the same as given earlier “do not hold too many positions” follow accurately the precise levels of the market and the scrips. Do not forget placing your stop losses – stay out of excitement, remember! Market is not going anywhere; you will always get opportunity to avail, if capital is not dried. Market is offering good possibilities to intraday traders.
Trading over 9,704 will bring some confidence and strength to bulls.
Buy recommended around 9,661 – 9,643 with stop loss 9560. Now the final exit is trailing up in current scenario.
Breaking 9,572 – 9,561 will be threatening for investors.
It is recommended to place limits for your target buying, intraday traders may not get chance of multiple entries.
We caution you to stay calm and focus on your target price for Long/Short.
That’s why we recommend TRADING ON LEVELS
Key Levels
9,946
9,867
9,766
9,737
9,704
9,661 – 9,643
9,572 – 9,561
9,514
9,472
9,392 – 9,368
Source: NCCPL
Foreign Investors Activities
22nd June, 2010
Net Buy USD $ 5,894,315
Disclaimer: This commentary, news or key levels are not a recommendation to buy or sell, but rather a guideline to interpret the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. We accept no liability whatsoever for any loss arising from any use of these levels. However the author DOES NOT GUARANTEES the accuracy of information provided on this report and is NOT RESPONSIBLE FOR ANY ERRORS AND/OR OMISSIONS.
