Volumetric contribution by LOTPTA and renewed buying in OGDC pulled the local bourse from sinking levels on Tuesday and kept the sentiment upbeat, while various large cap stocks reported growth and offered double digit yields. The index heavy weight, OGDC allowed a triple digit gain and the bench-mark anticipation of improved results kept the short term traders active in the stock.
The KSE-100 index closed at 11,947.44 with the gain of 13.98 points, while total volume and total value stood at 109,866,092 and 4,058,804,769 respectively. The KSE-30 index gained 5.73 points to close at 11605.61 levels, while the All Share index closed at 8389.06 levels after gaining 12.09 points. Out of total 387 scrips, 175 advanced, 126 declined and 86 remain unchanged.
Prolonged stagnation in post midday trade; however did check gains attained during first half of the session. The high priced stocks witnessed renewed sell-off, while mid-tier stocks invited profit taking. Resultantly, despite green on the benchmark; nervousness in the wider market was quite evident, while aggravated pressure during the day-end disallowed the index to attain a close above 12,000 points.
Low volatility in the political circuit, improved trade ties with India and denial by the concerned authority of any new taxes in the budget have certainly increased chances of acceptance of the likely proposal regarding changes in implementation mode of CGT.
With leverage facility available and being cautiously utilised by the market men, the proposed changes in CGT may not only increase revenue collections from capital markets, but also increase the number of participants, said Hasnain Asghar Ali at Aziz Fidahusein, adding that this is likely to allow substantial rise in turnover that in turn will activate price discovery mechanism.
Cautious and selective, however, stays the call with large cap and dividend yielding fundamentally strong stocks to be looked for placement and trading. Volumetric activity in growth and speculative stocks, currently trading at high multiples, can be looked for short term activity, he added.
