Investors remain upbeat


Value buying in almost all major scrips kept the exchange upbeat, while sector and stocks swapping on strength did restrict gains on the benchmark. Yet the overall trend was positive as turnover mainly contributed by the frontline stocks and the benchmark sustained the 100 million mark with a substantial rise in value of traded shares and depicted high activity in main board stocks.
The KSE-100 index closed at 12,198.12 with a gain of 30.00 points and total volume stood at 78,093,896 along with the total value of 3,911,445,417. KSE-30 index gained 18.27 points to close at 11,821.85 and All Share index closed at 8,485.12 after gaining 23.74 points. A total of 184 scrips advanced, 90 declined and 79 remain unchanged out of a total of 353 scrips traded.
Indeed, CFS elimination and CGT implementation has proved a double-edged sword damaging market turnover which was once touted as its selling point. Stocks having potential of trading at improved multiples are successfully inviting greater funds from local corporate, leverage and retail participants despite offloading from offshore channels.
With official confirmation on change in CGT mechanism, still missing, rumor mongering regarding whether or not the proposed change will be announced in budget, did keep volatility on the higher side. Despite economic, financial and geo-political issues the proposed change suggesting CGT/WHT at 0.02 percent on sale has option of settlement of tax liabilities.
With MTS funding available at cheaper rates the front line stocks have the potential of attaining and sustaining PE multiples of up to nine, and the current optimism confirms the same.
Hasnain Asghar Ali, a market analyst, recommended waiting for official confirmation as for participating in the bull-run likely to continue even after official announcement of the ‘great bargain’.