KARACHI: Prices of local stocks ended lower on Monday, on sentiment dampened by an announcement made on Friday in the national budget for the fiscal year 2011/12 (July-June) that capital gains tax (CGT) would still apply to individual investors.
Dealers said the losses were capped by investor interest in some sectors benefiting from the budget.
The Karachi Stock Exchange's benchmark 100-share index ended 0.20 percent, or 25.01 points, lower at 12,211.65.
Turnover rose to 95.85 million shares from 65.31 million on Friday.
"The market was expecting the removal of the CGT, which did not happen, so that had a negative impact today," said Sajid Bhanji, director at brokers Arif Habib Ltd.
"But the government reduced the excise duty on cement, which had a positive impact, and also it did not increase the rate of corporate tax on bank, as was expected, which is also positive for the market," he said.
Cement manufacturers were amongst the most active companies on Monday, with DG Khan Cement ending 1.22 percent higher at 24.97 rupees.
Dealers said they expected the market to remain steady in the near-term, before regaining positive momentum. (Reuters)
Dealers said the losses were capped by investor interest in some sectors benefiting from the budget.
The Karachi Stock Exchange's benchmark 100-share index ended 0.20 percent, or 25.01 points, lower at 12,211.65.
Turnover rose to 95.85 million shares from 65.31 million on Friday.
"The market was expecting the removal of the CGT, which did not happen, so that had a negative impact today," said Sajid Bhanji, director at brokers Arif Habib Ltd.
"But the government reduced the excise duty on cement, which had a positive impact, and also it did not increase the rate of corporate tax on bank, as was expected, which is also positive for the market," he said.
Cement manufacturers were amongst the most active companies on Monday, with DG Khan Cement ending 1.22 percent higher at 24.97 rupees.
Dealers said they expected the market to remain steady in the near-term, before regaining positive momentum. (Reuters)
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