KSE gains 140 points, ends at 12,264

ISLAMABAD: The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 1.16 percent, or 140.91 points, higher at 12,264.06 on turnover of 108.84 million shares.

Stocks ended higher on Wednesday amid hopes that the government will announce the removal of a capital gains tax in the upcoming 2011/12 budget, dealers said.

The 2011/12 (July-June) budget is due to be unveiled on June3.

According to media reports, the government may decide to remove the capital gains tax. A 10 percent capital gains tax is imposed on stocks held for six months or less and 7.5 percent on stocks held between 6 months to a year.

"Investors are hopeful that the government might announce a removal of capital gains tax," said Sajid Bhanji, director at Arif Habib Ltd.

In the currency market, the rupee eased to 85.92/98 to the dollar from the close of 85.90/95 a day earlier, thanks to steady dollar demand from importers.

The rupee hit a record low of 86.50 last week and dealers said the local unit may face pressure in days ahead amid increased demand for dollar for import payments and a bleak outlook. (Reuters)