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KARACHI: Stocks closed on a more than two-month high on Monday, with volume at a one-year high, after the country’s finance minister agreed amendments to capital gains tax (CGT) over the weekend.
The measures agreed by Finance Minister Abdul Hafeez Shaikh include investors not having to divulge sources of income until June 2013, keeping the current CGT rate flat until 2014 and abolishing withholding tax on sale.
“Investors believe that new funds will come to the market after government assurance that no source of funds will be required,” said Samar Iqbal, a dealer at Topline Securities Ltd.
“Retail participation was high as investors now feel comfortable to trade in stocks after the measures announced on Saturday.”
The KSE’s benchmark 100-share index closed up 2.23 per cent, or 262.98 points, at 12,037.66, its highest close since Nov 11 last year.
Volume rose to 230.14 million shares, compared with 178.42 million shares traded on Friday.
