KSE surges by 122 points on fresh buying

KARACHI: Share prices at Karachi Stock Exchange (KSE) ended on a three-month high on Wednesday amid hopes of a removal of a capital gains tax, which could be announced in the 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.

Officials from the finance ministry declined to comment.

The Karachi Stock Exchange's benchmark 100-share index ended 0.31 percent, or 37.54 points, higher at 12,168.12.Volume rose to 122.92 million shares, compared with 70.11million shares traded on Tuesday.

A stock dealer said that prevailing bullish sentiment pushed the KSE-100 index to a 3-month high level while volume rose to 14-day high to 3.3billion rupees. (Reuters)