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PSX hits record closing high; rupee flat

KARACHI: Pakistan stocks rallied to a record closing high on Tuesday on news a tax rebate would benefit shariah-compliant companies, dealers said.

The federal government has introduced a two percent tax rebate for shariah-compliant listed companies through the Finance Act 2016, the News International daily of the Jung Group reported on its website.

The rebate came after a suggestion by the Securities and Exchange Commission of Pakistan as part of reforms to develop the Islamic capital market, it said.

The benchmark 100-share index of the Pakistan Stock Exchange ended 1.70 percent higher, or 652.27 points, at 39,020.23, a record high close.

“Bullish momentum was witnessed with supplementary supportive news of tax rebate benefiting shariah-compliant companies,” said Imran Ali, head of research at Invest and Finance Securities Ltd.

Among gainers, K-Eletric was the volume leader with 39 million shares traded.

Cement stocks climbed, with Fauji Cement Company Ltd rising 3.39 percent, D G Khan Cement Company Ltd up 1.85 percent and Lucky Cement Ltd 2.68 percent higher.

Oil stocks also rose, with Pakistan Petroleum Ltd gaining 5 percent and Oil and Gas Development Co Ltd 2.62 percent higher.

The rupee ended flat at 104.79/104.84 against the dollar, compared with Monday’s close of 104.79/104.84.

Overnight rates in the money market fell to 5.60 percent from Monday’s close of 6.25 percent. –Reuters