KSE 100-index ends higher on last day of fiscal year 2010/11

KARACHI: The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.59 percent, or 72.73 points, higher at 12,496.03 on turnover of 65.92 million shares.

Stocks ended higher on Thursday, led by the Oil and Gas Co. Ltd. (OGDCL), but trade remained thin on the last day of the 2010/11 financial year.

"To me, it was a disappointing last day of the fiscal year, and there is not much to talk about except OGDCL, which is the main reason for the higher closing of the index," said Ashraf Zakaria, a dealer at brokers Ali Hussain Rajabali and Co.

Shares in OGDCL, the country's largest listed company, ended 2.79 percent higher at 153 rupees.

"Personally I had a small ray of hope that some announcement on the capital gains tax (CGT) will be made before the year-end, but probably I was being too optimistic," he said.

A report by brokers Topline Securities issued on Wednesday said trade throughout the year was hurt by security concerns, economic slowdown and higher interest rates, as well as there-introduction of the CGT after a gap of more than three decades.

This resulted in the yearly average volume falling to a 9-year low in 2010/11, it said.

The government confounded market expectations by retaining the CGT in the 2011/12 budget, announced on June 3.

In the currency market, the rupee ended slightly firmer at 85.93/98 to the dollar, up from the previous day's close of 86.02/07 as dollar supplies outmatched its demand from importers. (Reuters)