The Karachi share market on Monday witnessed a bull-run on the back of aggressive buying mainly by local investors and the KSE-100 index breached 12, 000 psychological level with the highest trading volumes in one year. investors welcomed the government approval of all proposals submitted by SECP to resolve capital gains tax issues, relief on disclosure of source of funds, mainlining rate of CGT, tax collection at NCCPL, withdrawal of withholding tax and relief in MTS margins and took fresh positions aggressively, analysts said.
The benchmark KSE-100 index registered a healthy increase of 262.98 points and closed at 12,037.66 level. After positive opening, the market witnessed bullish trend throughout the session and during trading the index hit 12,070.89 points intra-day high level.
Trading activities tremendously improved on the back of participation of local retail investors as the volumes at ready counter increased to 230.138 million shares as compared to 178.424 million shares traded on last trading session. Total market capitalisation increased by Rs 67 billion to Rs 3.123 trillion.
Jahangir Siddiqui Co was the volume leader with 35.936 million shares and gained Re 0.94 to close at Rs 6.49. Lotte Pakistan PTA increased by Re 0.73 to close at Rs 10.68 with 26.540 million shares. In the banking sector, Bank Al Falah and NBP surged by Re 0.37 and Rs 2.08 to close at Rs 12.16 and Rs 44.21 with 17.678 million shares and 8.455 million shares respectively. Azgard Nine inched up by Re 0.63 to close at Rs 4.06 with 15.183 million shares. DG Khan Cement increased by Rs 1.05 to close at Rs 22.05 with 11.312 million shares.
In the fertiliser sector, Fatima Fertilizer Co and Fauji Fertiliser Bin Qasim gained Re 0.03 and Rs 2.09 to close at Rs 22.53 and Rs 50.19 with 10.584 million shares and 50.19 million shares respectively. Arif Habib Corp increased by Rs 1.35 to close at Rs 29.26 with 6.036 million shares. TRG Pakistan inched up by Re 0.29 to close at Rs 1.88 with 5.918 million shares.
Colgate Palmolive and MCB Bank were the highest gainers increasing by Rs 33.38 and Rs 7.99 to close at Rs 708.31 and Rs 167.79 respectively while Nestle Pakistan and Siemens Pak were the worst losers declining by Rs 53.75 and Rs 11.83 to close at Rs 3293.75 and Rs 900.00 respectively.
As anticipated, the local participants upon the announcement by the dignitaries mainly on amnesty and CGT collection mechanism, entered the arena with a bang, although the early high did invite vigorous off-loading from the local circuits as some religiously followed the practice of "act on rumours and react of news", Hasnain Asghar Ali at Aziz Fidahusein Co said.
He said the energised locals, however, eyeing on the impact of decision that will translate in improvement in trading multiples, aggressively accumulated stocks from almost all the categories thus allowing the index to sustain 12,000 psychological level besides allowing substantial rise in volume and value of traded shares, although low priced and below par stocks did make a substantial contribution, gains and turnover in front liners paint a confident picture, despite roll-over week.
"Since the decision will indeed allow the local bourse to perform at its potential, provided official notification of the changes in timely issued, the stocks are likely to witness substantial rise in trading multiples due to expected rise in turnover, its therefore recommended to accumulate stocks sustaining growth in dividend and earnings despite all odds, along with those pegged against USD, mainly oil and gas exploration sector stocks, rising volume may, however, continue to offer short-term trading activity in low price stocks mainly those depending on rise in equity markets, economic, financial and political fronts may however continue to invite short term tremors thus suggesting selective activity, for the time", he added.
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