Market watch: Bourse firms on Capital Gains Tax replacement talks

Benchmark KSE 100-share index gains 57 points.

KARACHI:

Investors turned bullish on the last trading session of the week amid thin activity due to the budget announcement later in the day.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.47 per cent or 56.85 points to end at 12,236.66 point level.

Investors turned bullish today as the stock exchange board of directors recommended replacement of Capital Gains Tax with capital value tax at 0.02 per cent on value of transaction, said JS Global Capital analyst Jawad Khan.

Investors preferred to stay on the sidelines due to uncertainty ahead of the budget announcement, said analysts. Trade volumes fell to the paltry level of 65 million shares compared with Thursday’s tally of 87 million shares.

The cement sector came into active buying with DG Khan Cement up 3.7 per cent and Lucky Cement up 3.9 per cent amid rumours of reduction in Federal Excise Duty to Rs500 per ton from Rs700 per ton.

The index heavyweight Oil and Gas Development Company contributed 33 points in benchmark index’s gain of 57 points.

Foreign investment institutions were rumoured buyers in refineries while locals were buyers in cements and energy stocks, added Khan.

Foreign activity picked up as net inflow stood at Rs537 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Shares of 352 companies were traded on Friday. At the end of the day 147 stocks closed higher, 103 declined while 102 remained unchanged. The value of shares traded during the day was Rs2.46 billion.

Fauji Cement Right was the volume leader with 11.04 million shares gaining Rs0.04 to finish at Rs0.13. It was followed by DG Khan Cement with 6.53 million shares gaining Rs0.88 to close at Rs24.67 and Bank of Punjab with 4.29 million shares firming Rs0.23 to close at Rs6.35.

Published in The Express Tribune, June 4^th, 2011.