Bull-run has continued for the third consecutive session on the Lahore Stock Exchange (LSE) where share values recorded widespread gains on Wednesday on the back of positive developments about the capital gain tax (CGT) which helped the market add 5 percent to its worth.
The LSE-25 Index, with a remarkable gain of 201.24 points, ended at 4,147.36 points as Tuesday's 3,946.12 points. The volume also slightly improved and registered at 13.608 million shares compared with previous 13.236 million shares.
The market responded well to the happy news about the capital gain tax and the jubilant players continued buying throughout the day. Because of last two-three weeks', heavy falls, the market was hungry for positive news, so its reaction to the developments about the CGT and the Capital Value Tax was expected, analysts said.
The government has decided to continue exemption on the capital gain tax for listed stocks for another two years and there will also be no upward revision in the capital value tax in the Budget 2008-09. On Wednesday, the oil sector led the proceedings with active support from the potential investors. "If we look at top 10 positions of gainers and losers, there was only one losing scrip and that was Mybank Limited," an analyst said.
He said the market on Wednesday outperformed and the gains were widespread. A salient feature of the Wednesday's trading was that the LSE index once again closed above 4,000 level. During this week so far, the market has gained 320 points and the trend is expected to continue in the upcoming sessions. However, they pointed out that at the weekend the market could take a technical turn.
Some analysts said that since political situation was volatile and confusion over the constitutional package was not over, therefore, the market was unlikely to sustain the trend for a long time.
According to them, the people should not take decisions in haste and trade in their limits. They, however, pointed out that after the budget the market could take a clear turn - whether positive or negative - depending on the finance minister's budget speech.
Out of total 120 active issues 66 moved forward, one landed in minus column while 54 were intact to their overnight positions. Among top gainers, PSO gained Rs 23.00, while in negative zone, MyBank lost Rs 25. NIB Bank and OGDC were the volume leaders with 2.357 million and 1.211 million shares respectively.