Pre-market moves: KEL in for a bumpy ride

100 Index extended losses yesterday as it lost more than 107 points at day end closing the session at 40,239 points. Cumulatively, a total of 143.2 million shares worth Rs 4.98 billion were traded during yesterday’s session.

Amongst the sectors, power generation and distribution sector dominated trading with 31.1 million shares traded with K-Electric (KEL) which was the highest traded scrip yesterday. However, KEL is in for a bumpy ride today after National Electric and Power Regulatory Authority (NEPRA) rejected the power company’s demand to substantially increase seven-year tariff. KEL has been pursuing government to raise tariffs by at least Rs 3 per unit in order to help private sector investment. However, to the contrary NEPRA allowed a five paisa per unit allowance to KEL against recent exchange loss.

Furthermore, Securities and Exchange Commission of Pakistan (SECP) registered 773 companies in the month of June, raising the total of registered companies to 87,622. According to the SECP release, 77 percent companies were registered as private limited, 21 percent as single-member, 2 percent as public unlisted, not-for-profit associations, foreign companies and limited liability partnerships.

The registration also includes two foreign companies which were registered in Karachi, whereas, foreign investments were also reported from Australia, Canada, China, France, Germany, Indonesia, Japan, Jordan, Portugal, Saudi Arabia, Singapore, Syria, the UK and the US.

To the relief of consumers, Supreme Court announced that it wants to see a reduction in recently increased prices of petroleum products after much hue and cry was raised by associations representing consumers’ interests. The remarks were made by a three-bench judge led by Judge Saqib Nisar who has taken a suo moto notice of the exorbitant and unreasonable tax, cess, duty and fee on petroleum products. The bench has asked all the relevant stakeholders to share their input on how the taxes on petroleum products can be curtailed.