KARACHI, June 9: All previous records were broken on the Karachi Stock Exchange on Monday as the new budget proved a catalyst for the market to its onward march to the new index level of 3,200 points aided by sectoral incentives and the perception of fresh capital gains.

It may not be the end to the market’s sustained forward thrust both in terms of market capitalization and index level after the former crossed the benchmark of Rs700bn at Rs710bn and at 3,197.18, respectively, as both seem to be poised to establish fresh career-best levels during the post-budget sessions.

The KSE 100-share index managed to finish just three point short of its target of 3,200 at 3,197.18 as compared to 3,141.82 during the pre-budget session, up 55.36 points or 1.76 per cent. Volume soared to 389m shares.

The robust rally and a terribly broad-based buying euphoria reflect that the market seems to have adjusted itself to negative side of the political standoff and may follow its fundamentals in future too provided the political situation did not take an ugly turn on the LFO issue.

“The market remains on the one-way street heading for the north without looking back since the opening bell,” a leading stock analyst said, adding “all the pivotals and most of the second-liners virtually raced towards their new chart points on massive buying.”

He said investors led by the financial institutions might be looking beyond the 3,200 index level, possibly 3,500 if the prevailing tension on the political front eases.

“The new budget seeks consolidation and continuity of the major tax reforms the government has undertaken during the last three years,” brokers commenting on the fiscal measures said. “Cut in 2,500 items to 25 per cent, grouping of a number of tariffs, extension of general sales tax to wholesale and retail stages and withdrawal of exemptions on a number of products are notable among them.”

The new national budget, among others, provides incentives to multiple sectors in the shape of abolition of taxes, and rationalization of duties and taxes on some other counters.

The chief beneficiaries being cement, in the form of 25 per cent cut in excise duty, banking, three per cent reduction in tax, automobile, fertilizer, cables and electric goods, insurance and some others.

The budget presented amidst opposition uproar may not have met all the demands of the corporate sector but its growth orientation seeking more investment to create new employment opportunities are expected to generate a lot of interest in some of the listed shares during the next couple of weeks.

Prominent gainers were led by IGI Insurance, Glaxo-SKF, Security Papers, Dreamworld, Gillette Pakistan, Pakistan Services, Al- Ghazi Tractors, Rafhan Maize and Unilever Pakistan, which posted gains ranging from Rs5 to Rs19.95.

They were followed by EFU General, Suraj Cotton, General Tyre, Millat Tractors and Cherat Papers, up Rs3 to Rs4.

Losses on the other hand were fractional barring Ferozsons Lab, Gatron, Atlas Honda, Jahangir Siddiqui & Co and Nestle MilkPak, off one rupee to Rs2.50.

Trading volume rose to 389m shares from the previous 259m shares as gainers maintained a strong lead over the losers at 266 to 116, with 49 shares holding on to the last levels.

PTCL topped the list of most actives, higher by 80 paisa at Rs26.95 on 66m shares, followed by D.G. Khan Cement, up 85 paisa at Rs22.15 on 59m shares, Dewan Motors, higher by Rs1.75 at Rs25.25 on 20m shares, Bosicor Pakistan, firm by Rs1.50 at Rs20.30 on 19m shares, WorldCall, up 70 paisa at Rs15.35 on 17m shares and PSO, higher by Rs2.10 at Rs216.90 on 13m shares.

Other actives were led by PIAC ‘A’, up 80 paisa on 17m shares, Maple Leaf Cement, higher by Rs1.05 on 14m shares, Nishat Mills, up Rs2 on 13m shares and FFC-Jordan Fertilizer, steady 10 paisa on 12m shares.

FORWARD COUNTER: PTCL also led the list of actives on the forward counter and was marked up by 75 paisa at Rs26.95 on 10m shares, PSO, higher by Rs1.75 at Rs214.85 on 4m shares, Hub-Power up 25 paisa at Rs35.50 on 3m shares, FFC-Jordan Fertilizer, firm by 10 paisa at Rs12.25 on 2.391m shares and Sui Northern Gas, steady 15 paisa at Rs32.15 on 2.212m shares.