KARACHI, June 1: Share prices at the Karachi stock market recovered 90.35 points, from the previous two days of losses.

The KSE-100 index closed at 13,876.97 points on Friday.

Trading remained thin, especially in the first session as investors nervously awaited the announcement of the federal budget 2012-13 in the evening.

Foreign investors bought net $3.36 million worth equity, while banks turned out to be major sellers that offloaded shares valued at $2.39 million on Friday.

The local investors preferred to remain on the sidelines, which trimmed down the turnover further to 107 million shares on Friday, from 125 million shares the previous day.

Traded value of shares stood down to Rs4.085 billion, from Rs5.659 billion the day earlier.

Market capitalisation, however, rose to Rs3.552 trillion, from Rs3.528 trillion on Thursday.

Equity investors were also unimpressed by the figures presented in the Economic Survey 2011-12 on Thursday, which showed that all targets, except that of inflation, were missed. But ahead was the federal budget and punters played on both sides of the fence depending on the arrival of fresh leakage from the budget.

By the second session, the market was aware of the incorporation of Capital Gains Tax Ordinance in the Finance Bill, which helped lift share values in selected stocks, particularly those that were expected to benefit from the budgetary proposals.

Fertilizer stocks remained under pressure due to the possibility of increase in feed gas (cess). Samar Iqbal, Equity Dealer at Topline Securities, said that the market recovered in the pre-budget session amid hopes that the capital gains tax Ordinance will finally become part of the finance bill. Moreover, investors bought cement stocks hoping that government expansionary budget will generate cement demand in the country. In spite of falling oil price, oil stocks performed well as investors expect healthy dividends with quarter-ending June, results.

Ahsan Mehanti, at Arif Habib Corp, observed that the Pakistan stocks closed higher in pre-budget rally at KSE led by oil and cement stocks amid renewed foreign interest and institutional support.

Recovery in global commodities on expectations of ease in euro-zone debt crises, speculations regarding contents of federal budget announcements played a catalyst role in bullish sentiments.

Total of 354 stocks were active on Friday with 194 gainers and 82 losers. Another 78 remained unchanged. On the active list, DG Khan Cement posted gain of Rs1.47 to Rs42.61 on 12m shares. It was followed by Fauji Cement up by 29 paisa to Rs6.44 on 10m shares; Engro Corporation down by 97 paisa to Rs106.63 on 6m shares; Jahangir Siddiqui Co up 27 paisa to Rs15.12 on 6m shares; Lafarge Pakistan higher by 30 paisa to Rs4.84 on 5m shares, Lucky Cement making good gains of Rs2.22 to Rs128.51 on 5m shares on expectations of incentives in the budget.

Lotte PakPTA added 22 paisa to Rs8.49 on 3m shares; PTCL higher by 37 paisa to Rs15.18 on 3m shares; Engro Foods was up by Rs1.23 to Rs3m shares and Dewan Cement added 32 paisa to close at Rs4.61 on 2m shares.