Karachi Stock Exchange Ahead Of Upcoming Budget 2011-12

KARACHI: Bullish activity witnessed on Wednesday at Karachi Stock Exchange ahead of upcoming federal budget 2011-12 announcement this week. The Karachi Stock Exchange’s 100-share index managed to close at 12,264.06 points, up 140.91 points or 1.16 per cent on market turnover of 118.31 million shares.
The KSE market capitalisation amounted to Rs3, 256.91 billion or $37.91 billion while trading value was recorded at Rs4.75 billion or $55.31 million respectively. The KSE-30 index ended higher 11,890.10 points with the gains of 127.34 points or 1.08 per cent.
Development Assistance: The KSE future volume recorded at 3.47 million shares and it value was at Rs461.05 million shares with 7.48 per cent spread rate. Pre-budget rally was lead by oil sector scrips after US Brent crude crossed $116 a barrel and expectation loom over positive federal budget announcements for oil refineries, cement and fertilizer sectors. UK commitment for 1.4b pounds for Pakistan development assistance was taken positive despite concerns for rising fiscal deficit, said a market analyst. Deregulation of fuel prices was indeed taken positive by the market participants, thus allowing the entire E&P sector to display strength, duly backed by turnover, reduction in local fuel prices, a positive for inflation along with popular rumour echoing in the arena regarding likely reduction in cash margin requirement, likely to be replaced with shares, in leverage markets, including deliverable future and MTS seemingly geared up the resident participants, for renewed activity.
Although turnover and value of traded, shares stayed on higher side, the momentum yet again failed to match the expectations, thereby indicating high participation by the active participants, while sideliners stayed glued to the visitors gallery, most probably waiting for materialisation of high expectations from the federal budget

Source: marketwatch.pk

Karachi Stock Exchange Director Hails Budget

KARACHI: Director Karachi Stock Exchange (KSE) Zafar Moti Friday lauded the budget 2011-2012 and said it would have a positive impact on the country’s stock market. He said the government has agreed to the proposal of stock market to exempt individual and small investors from capital gain tax (CGT). He said this decision would encourage investors and help in boosting the trading volume in the capital market. These volumes have dropped to historically low levels in the last one and a half year, he added. He said the Finance Minister did not make specific announcement regarding CGT, but it was agreed with KSE that individual and small investors would continue to pay 0.02 percent withholding tax as a final tax liability. This will be announced in the Finance Bill 2011-12, he added. Commenting on the withdrawal of special duties and Federal Excise Duty on large number of items, Moti said it would boost local production of these items in the country and discourage their smuggling. Managing Director KSE Nadeem Naqvi said national budget 2011-12 would activity in the stock market and encourage initial public offerings (IPOs). Naqvi said KSE has roposed to exempt retail and small investors from capital gain tax as he tax payers do no want any interaction with tax collectors. He said simplification of tax collection would increase revenue for the country and boost the confidence of taxpayers. He said the government wanted to trigger growth in the economy and the cut in duties would have an impact on local production of goods and stock market would have so many IPOs.

Source: dailytimes.com.pk