Business | Markets

Pakistan stocks up on tax exemption hopes

Pakistani stocks ended more than 1.5 per cent higher on Tuesday, as investors were hopeful a tax exemption on share trading would be extended, dealers said.

  • Reuters
  • Published: 00:11 June 4, 2008
  • Gulf News

Karachi: Pakistani stocks ended more than 1.5 per cent higher on Tuesday, as investors were hopeful a tax exemption on share trading would be extended, dealers said.

The Karachi Stock Exchange benchmark 100-share index rose 1.61 per cent, or 198.27 points, to 12,479.47 on turnover of 115.2 million shares. Gainers beat losers 248 to 78.

Investors want an extension of an exemption on capital gains tax that includes share trading when the government announces its budget for the 2008-09 fiscal year on June 10. Capital gains tax was exempted until June 30 in the previous budget.

A KSE delegation met acting Fiance Minister Syed Naveed Qamar last week to discuss the market and the economy. He said the government had yet to decide on the tax and was considering options to improve revenue collection.

"Sentiment seemed to have improved as senior members walked around the stock exchange asking people to sign petitions asking for CGT [capital gains tax] exemptions," said Asad Iqbal, managing director at Ismail Iqbal Securities Ltd. "However, sentiment will not revert to bullishness until the budgetary effects on the capital markets are clear."

Dealers said investors were also accumulating shares on cheap prices as the market shed seven per cent the previous week on political uncertainty and economic concerns.

The KSE-index is down 11.3 per cent since the beginning of the year and 20.7 per cent lower than a life high set on April 21.

The free-float KSE-30 share index gained 2.22 per cent to 14,638.55.

Among the most active companies, volume leader NIB Bank gained 1.4 per cent to Rs12.57, DG Khan Cement rose one per cent to Rs76.49.

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