Market watch : Bourse firms despite deadly attack in city

Rumours of capital gains tax deferral lift sentiments: equity dealer.

KARACHI:

The stock market firmed on Monday led by oil stocks despite a deadly attack on a naval base in the city.

The Karachi Stock Exchange (KSE) benchmark 100-share index gained 0.48 per cent or 57.26 points to end at 12,030.64 points.

At least 10 security officials were killed in PNS Mehran, Karachi after militants stormed the base late on Sunday night and attacked with guns, bombs and rockets.

A meeting of Pakistan Business Council and Karachi Stock Exchange members with President Asif Ali Zardari at the Top 25 Companies Awards ceremony helped lift sentiments amid hopes of some positive developments on the tax front, said JS Global Capital analyst Jawad Khan.

Rumours prevailed that capital gains tax could be deferred for a year, said Elixir Securities equity dealer Nazim Abdul Muttalib.

Trade volumes remained unchanged and stood at a paltry level of 40 million shares against the preceding trading session.

Oil and Gas Development Company (OGDCL) and Pakistan Petroleum Limited (PPL) led the rally amid market talk of buying by foreign funds. OGDCL edged up 0.7 per cent while PPL surged two per cent.

Among fertiliser stocks, Engro advanced 0.2 per cent on expectations that gas supply to its new plant would resume after a five-day closure.

The banking sector generated decent volumes on the back of market grapevine that the tax rate on the banking sector would remain unchanged at 35 per cent in the upcoming budget. United Bank stood firm as it gained 1.55 per cent.

Low-priced stocks remained in the limelight as Lotte Pakistan PTA was the volume leader with 5.57 million shares, gaining Rs0.13 to finish at Rs15.06. It was followed by Jahangir Siddiqui and Company with 3.7 million shares, gaining Rs0.07 to close at Rs7.17 and Azgard Nine with 3.19 million shares, firming Rs0.15 to close at Rs5.79.

Published in The Express Tribune, May 24^th, 2011.