KSE gains 43 points amid lackluster day

KARACHI: Prices of stocks at Karachi Stock Exhange (KSE) ended up on Wednesday in light trading, as investors remained sidelined amid a lack of positive triggers, dealers said.

The Karachi Stock Exchange's benchmark 100-share index ended 0.35 percent, or 43.27 points, higher at 12,369.41.

Turnover fell to 59.47 million shares, compared with 68.17million shares traded on Monday but still lower than the daily turnover which is usually on average around 100 million shares.

"There is still uncertainty in the market and lack of interest," said Mohammed Sohail, chief executive at Topline Securities Ltd.

Dealers said there was lack of interest in the market because of the continued implementation of a capital gains tax.

The government confounded market expectations earlier this month by not removing the capital gains tax on certain investments in the 2011/12 budget, announced on June 3.

A 10 percent capital gains tax is imposed on stocks held for six months or less, and a 7.5 percent tax is levied on stocks held between 6 months to a year.

"The next triggers for the market will be the IMF meeting in July and the year-end corporate results," said Khalid Iqbal Siddiqui, director at Invest & Finance Securities Ltd.

Pakistan and IMF officials are due to meet in July to discuss the possible release of the sixth tranche which has been delayed since last August due to the slow implementation of fiscal reforms.