Rumours regarding a relaxation in CGT implementation fired up the exchange as frontline stocks lead on back of fresh influx by corporate investors and allowed the local bourse to reap gains backed by decent turnover
The KSE-100 index closed at 12,168.12 with a gain of 37.54 points and total volume stood at 104,251,069 along with the total value of 3,090,821,345. The KSE-30 index gained 48.78 points to close at 11,803.58 and the All Share index closed at 8,461.38 after gaining 30.18 points.
A total of 209 scrips advanced, 61 declined and 89 remain unchanged out of a total of 359 scrips traded. Despite, the lack of official commitment for support at the bourse, local stakeholders accumulated stocks likely to display strength in the near future, thus inviting an across the board recovery while leading from the front. Below par stocks contributed more then 50 percent to the total turnover while the emergence of quality volume indicating confidence revival is likely.
Since improved turnover levels mainly in the frontline stocks in the MTS list is likely to offer a substantial rise in valuations, thereby keeping resident participants on their toes for fresh bets. Intra-day dips in front line dividend yielding stocks should be capitalised on while growth stocks can only be viable for short term trades said Hasnain Asghar Ali at Aziz Fidahusein.
Since rumors are likely to remain rife till June 3, 2011 it indicates that positive and negative implications are posed regarding the implementation of CGT, thereby sustaining volatility at the local bourse, he added.