Budget 2009 and Karachi Stock Exhange (KSE)

In budget 2009, 16% tax has been imposed on brokerage houses of Karachi Stock Exhcange (KSE). This will definitely effect market performance especially since this is a very large percentage of tax on stock brokers and they will ultimately recover this amount from investors. Next week (starting from Monday 15th 2009) may be very heavy for investors and market index will be down but this may the game of 2-3 days or whole week; ultimately market has to be up.

5% duty on local cars has been removed; this may lead to an increase of sales of Suzuki Vehicles. Also 16% tax has been imposed on banking services. Also there will be carbon duty on petroleum items that will definitely become part on increase of prices ob petrol and diesel.

If we keep above points in mind, that mean KSE - 100 index will be effected a lot especially on coming week but players may take this up from down since market is already touching its lower bounds. Anyways best of luck.

NOTE: The information posted in this blog is based on current afairs & invstors point of view. There may be discrepency in the ground realities.

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