Karachi Stock Exchange ends a two-month high; volume closes at one-year high

Karachi Stock Exchange ends a two-month high; volume closes at one-year high

Karachi: (Monday, January 23, 2012) Karachi Stock Exchange (KSE) after a prolonged dismal performance finally exhibited a bullish trend with the stock closing at more than two-month high and the trade volume concluded at a one-year
high.

The present improvement in the market’s performance is attributed to the Minister for Finance, Abdul Hafeez Shaikh who have conceded to the investors demand to amend the capital gains tax (CGT) over the weekend.

The measures agreed upon between the Finance Minister and the investors include investors not having to divulge sources of income until June 2013, while the present CGT rate will be pegged until 2014. Moreover, the Minister for
Finance also announced to abolish withholding tax on sale.

Commenting on this latest development and its implications on the stock market, Samar Iqbal, a dealer at Topline Securities Ltd. Said, “Investors believe that new funds will come to the market after government assurance that no
sources of funds will be required. Retail participation was high as investors now feel comfortable to trade in stocks after the measures announced on Saturday.”

Showing a significant improvement, the KSE’s 100-share index went up and closed at 2.23 per cent. For showing a figure of 262.98 points at 12,037.66, it closed highest since Nov.11 last year.

The volume of shares traded today in the market ended at 230.14 million. Compared to Friday’s 178.42 million shares, they also depicted a considerable improvement.

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Posted by Fayyaz Yaseen on Jan 23 2012. Filed under Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry