Index gains 141.11 points

Local investors'' interest supported the KSE-100 index to register an increase of 141.11 points to close the week ending on June 11, 2011 at 12,377.77 with improved volume.
"Some fundamentally positive developments, announced in the budget including discontinuation of flood surcharge and absence of the much feared asset tax, invited fresh buying at the bourse during the week", analysts said.
The announcement of hydrocarbon discovery at Domail further boosted market sentiment and the index at times crossed 12,400 points mark. However, it failed to sustain this level due to profit taking by foreign investors.
Trading improved and the average daily volume increased to 112.32 million shares, or 9.1 percent, as compared to previous week''s 102.93 million shares.
Market capitalisation increased by Rs 28 billion to Rs 3.279 trillion.
The fresh buying was seen mainly from the local participants while the foreign investors turned sellers of shares with a net outflow of $6.9 million as compare to an inflow of $7.1 million of previous week.
On Monday, the first post-budget trading session, the market witnessed mixed trend and the index after moving to both sides closed at 12,211.65 points, down 25.01 points with trading of 95.854 million shares.
On Tuesday, the situation improved on the back of active participation of local funds and the index surged by 103.34 points to close at 12,314.99 points with 100.016 million shares.
On Wednesday, the index gained 52.30 points to close at 12,367.29 points with 151.289 million shares.
On Thursday, the investors opted for profit taking on available margins and the index lost 37.15 points to close at 12,330.14 points with 111.861 million shares.
On Friday, the market witnessed local investors'' support and the index increased by 47.63 points to close at 12,377.77 points with 102.591 million shares.
Sana Hanif, analyst at JS Global Capital, said that in its first post-budget trading session, the market stayed under pressure due to status quo maintained over the capital gain tax (CGT) issue. However, the market later on gained some momentum with improved volumes led by some fundamentally positive developments announced in the budget including discontinuation of flood surcharge and absence of the much feared asset tax.
The announcement of hydrocarbon discovery at Domail further boosted market sentiments. Average trading value increased by 62 percent on week-on-week basis to Rs 4.7 billion - highest in 12 weeks - as blue chips mainly dominated the activity.
With corporate tax rate being unchanged for banks in the budget, investors remained active throughout the week. The sector remained an outperformer and gained 1.8 percent on week-on-week basis. The Construction and Materials sector also came in limelight on the back of reduction of FED on cement in the budget; however, profit taking was witnessed during the later part of the week. FFC also performed well (up 4 percent) amid rumours of another round of price hike post the budget. A discovery at the Domail field with initial flow of 945bpd oil and 11mmcf gas led POL to gain 5 percent.
Yawar Uz Zaman at Invest Capital and Securities said that the market started this week with a slightly neutral tone, but positivity was later restored as increased interest was witnessed on local front.
Although, there was no positivity regarding CGT as per expectations, the federal budget seemed positive for corporate sector as well as cement as a whole. Oil discovery at Ikhlas block, where POL holds 80 percent stake, called investors for healthy buying in oil sector stocks.