ISLAMABAD, May 31: The stock market performed well in the outgoing fiscal year as the KSE 100-index touched the four-year high above 14,000-barrier in May 2012 reflecting confidence of investors in the equity market.

The Economic Survey 2011-12 said that the leading stock markets indices of the world witnessed mixed trends with negative growth of 18.1 per cent in China. However, the KSE 100-index, which stood at 12,496 on June 20, 2011, closed at 14,618 on May 7, 2012, showing a growth of 17 per cent over the closing index of last financial year.

At the capital market the outperforming sectors were oil and gas sector, food producers, chemicals, construction and materials, among these the personal goods comprise of largest sector with 188 companies mostly related to the textile sector with a listed and market capital of Rs54.36 billion.

Another key development at the stock markets during the fiscal 2011-12 was that the government levied Capital Gains Tax on securities at the rate of 8 per cent and 10 per cent for investment holding up to six months and 12 months respectively till June 30, 2014. NCCPL will be depositing the tax with the FBR on an annual basis.

Besides the net investment by the foreign investors in the capital market during July-March 2011-12 reflected a net outflow of $176 million.

“This indicates that bullish trend observed in Pakistani equity market is due to the restoration of the confidence of local investors and institutions,” the economic survey said and added, enactment of demutualisation law will further strengthen the country’s stock markets.

While the second largest capital market of the country Lahore Stock Exchange witnessed an encouraging sign. The turnover of shares on the LSE during July-March 2011-12 was 0.58 billion shares compared to 0.923 billion during the same period last year, but the total paid-up capital increased from Rs888.2 billion in June 2011 to Rs981.7 billion in March, 2012.

The Islamabad Stock Exchange (ISE) witnessed a mixed trend during the first nine months of 2011-12.