The investors'' reviving interest in second session mainly in oil sector stocks on Friday supported the KSE-100 index to register healthy gain of 94.57 points to close at 11,973.38 points. The opening was negative, and the index remained in red throughout the first session, dropping to 11,840.03 points intra-day low level, down 38.78 points with extremely low volumes.
But, in second session, local retail investors entered the market on rumours of likely change in capital gain tax implementation. Trading improved and the volume at ready counter increased to 44.371 million shares as compared to 40.083 million shares traded on Thursday.
Market capitalisation increased by Rs 20 billion to Rs 3.174 trillion. Of 336 active stocks, 154 closed in positive and 74 in negative, while the values of 108 scrips remained unchanged. Bank Al Falah was the volume leader with 7.932 million shares and gained Re 0.17 to close at Rs 10.55. Pak Reinsurance increased by Re 0.90 to close at Rs 17.14 with 4.565 million shares. Lotte Pakistan PTA inched up by Re 0.20 to close at Rs 14.93 with 3.646 million shares. Jahangir Siddiqui Co gained Re 0.16 to close at Rs 7.10 with 3.093 million shares. Engro Corp inched up by Re 0.74 to close at Rs 191.57 with 1.663 million shares.
OGDC surged by Rs 1.90 to close at Rs 148.38 with 1.526 million shares. NIB Bank inched up by Re 0.03 to close at Rs 1.58 with 1.260 million shares. Azgard Nine gained Re 0.08 to close at Rs 5.64 with 0.926 million shares. Fauji Fertiliser Co increased by Re 0.87 to close at Rs 139.10 with 0.921 million shares. D G Khan Cement inched up by Re 0.23 to close at Rs 21.83 with 0.911 million shares.
Unilever Pak and Nestle Pakistan were the highest gainers increasing by Rs 65.20 and Rs 18.93 to close at Rs 5279.90 and Rs 3559.81 respectively, while Wyeth Pak and Shezan International were the worst losers declining by Rs 37.00 and Rs 6.87 to close at Rs 816.00 and Rs 145.69 respectively.
Hasnain Asghar Ali at Aziz Fidahusein Co said that budget leaks on likely change in capital gain tax (CGT) implementation mode led to low volume recovery by the index. In an otherwise dull session, renewed buying in dividend-yielding stocks and speculative activity in various high priced stocks after initial setback disallowed red numbers prominent in various front line expensive stocks facing various threats to dominate the benchmark.
He said that budget leaks suggesting high chances of acceptance of proposals to change the implementation mode of CGT by officials did allow mainly the local participants to arrest low volume decline during early trade, thus disallowing panic to set in, despite low and sinking volumes. He said that the likely change proposed in CGT collection would result in increase in revenues from equity market activities besides providing the equity market desired depth, with financing through Margin Trading System (MTS) available at cheaper rates. The likely changes in collection mode of CGT would certainly allow the leverage participants to trade at improved capacity, despite a gloomy economic, financial and geo-political horizon.