KSE rises by 28 points

OUR STAFF REPORTER KARACHI - The stock market closed higher on Tuesday despite thin trading activity in specific stocks ahead of the monetary policy announcement and the budget announcement for 2011/12 fiscal year. The KSE 100-share index closed at 11,930.24 points after gaining 28.12 points. Market turnover improved to 63.35 million shares from 45 million shares traded in the last session. The KSE market capitalization was recorded at Rs3,166.43 billion or $37.09 billion while total trading value came at Rs1.40 billion or $16.43 million respectively. The KSE 30-index ended a dull day with 19.74 points or 0.17 per cent to close at 11,575.58 points. KSE future volumes were recorded at 3.82 million shares while its value was at Rs226.06 million with 0.08 per cent spread. The SECPs proposal of lenient view on capital gain tax (CGT) triggered short covering, allowing benchmark a swift recovery after a moderate yet, positive opening. Gains in index heavy weight OGDC thereon allowed the benchmark to register a triple digit gains, wherein various dividend yielding stocks, well placed on growth track did invite cautious accumulation. However, sell-off on strength in high priced mainly due to sector and stock swapping along with prolonged stagnation forced the benchmark to loose substantial values by the day end. Fresh conditions by IMF for the release of remaining portion of the reserve support fund, along with tougher deficit targets, were certainly an add-on to the already existing economic, financial and geo-political woes, thus disallowing the market men from participating on strength, said a market analyst. With monetary policy likely to be announced this week, wherein the tightening stance is expected to resume after a pause of four months as depicted by sensitive indicators, mainly rising inflation and high government borrowings, is likely keep the activity at the local bourse restricted, however, top companies award in President House will keep the excitement linked to official statement regarding CGT waiver or amendments alive, thus offering chances of snap rallies alive, in upcoming sessions, the analyst added.

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