Local stocks surge by 140 points

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

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.

Officials from the finance ministry have declined to comment.

"Investors are hopeful that the government might announce a removal of capital gains tax," a stock dealer said. (Reuters)