The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged to 2.23 per cent or 262.98 points to end at the 12,037.66 point level on Monday, a two-month high.
Investors believe that new funds will come to the market after the government’s assurance that source of income will no longer have to be disclosed, said Topline Securities Equity Dealer Samar Iqbal.
Retail participation was high as investors now feel comfortable to trade in stocks after the measures announced on Saturday, added Iqbal.
Trade volumes gained to a year-high of 230 million shares compared with Friday’s tally of 178 million shares.
The finance minister approved the Securities and Exchange Commission of Pakistan (SECP) proposal on revamping Capital Gains Tax (CGT) during a visit to the Karachi Stock Exchange in a bid to increase the activity at the bourse.
Foreign institutional investors were buyers of Rs112 million and sellers of Rs193 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.
MCB Bank, Engro, DG Khan Cement, National Bank of Pakistan and Nishat Mills hit their upper limit of the day during the trade session.
Shares of 360 companies were traded on the first trading session of the week. At the end of the day 221 stocks closed higher, 61 declined while 78 remained unchanged. The value of shares traded during the day was Rs7.65 billion.
Jahangir Siddiqui and Company was the volume leader with 35.9 million shares gaining Rs0.94 to finish at Rs6.49. It was followed by Lotte Pakistan PTA with 26.5 million shares firming Rs0.73 to close at Rs10.68 and Bank Alfalah with 17.7 million shares increasing Rs0.37 to close at Rs12.16.
Published in The Express Tribune, January 24th, 2012.
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The only good thing happened to the stock market;after a long period of silence.
An interesting move by the Finance minister. This looks like an opportunity for corrupt people to get their wealth clean by investing into stocks. Or perhaps Big Dealers have agreed to fund the next elections based on profits they will make in the process!