Market activity is dormant since morning. The financial institutions are off today because of  a public holiday announced by State Bank of Pakistan.

Early movers; agriculture related stocks continue to move upwards after the budgetary announcement. As investors set to buy early as Government increases subsidies and boosts the voter heavy agriculture sector.

Laggards; Wyeth Chemicals continues to drop along with Sanofi Aventis Pakistan. Lucky becomes prone to profit taking as investors continue to make gains on the shares.

Volumes leaders; steel [ASL, ISL] and cement [POWERR] sectors continue to be the pick of investors.

The market since morning has declined by 300 points. The budget was a tad negative for the equities market, which was a result for measures in the upcoming budget like getting rid of holding period tiers on the CGT and an increase of tax on dividends.

Under the next year’s budget, Banks witnessed a continuation of 4% super tax much to their annoyance despite several assurances by the Government of the tax being temporary. Furthermore, taxes were discontinued on branchless baking transactions.

The power generation sector under the next budget has been positively alleviated. The levy on imported coal is set to benefit the companies in the sector as the budget aims to add 18,000 MW to the grid in the coming fiscal year as it nears elections.

Overall the budget was agriculture leaning, as the PML (N) government bids to please the voter heavy sector in order to secure a second term in the Islamabad. The budget has set a target of 6% for the upcoming year, which it expects to achieve by the increased PSDP projects and fueling growth thereof.