KARACHI, June 11: Stocks staged a snap pre-budget rally on Wednesday on active short-covering triggered apparently by some ‘fiscal leaks’ about the corporate taxes and relief to some prominent sectors of the economy, ignoring the weak data in the Economic Survey.

The KSE 100-share index recovered 138.34 points or 1.07 per cent and was quoted well above the barrier of 13,000 points at 13,016.38, amid heavy speculative buying in the banking, oil and fertiliser sectors, billed as the chief beneficiaries of the tax relief. The free float 30-share index on the other hand recovered 210.41 points at 15,246.15 or 1.40 per cent as leading index shares came in for active support at the current lows.

Heavy buying in MCB Bank, National Bank, and some other leading shares indicates that a section of foreign investors is also in the market and for good reasons too as the current lower levels promise higher capital gains in the post-budget sessions, analyst Ahsan Mehanti said.

“Investors had already two-year exemption on capital gains tax and an expected status quo on the Capital Value Tax and Withholding Tax in the new finance bill generated a good bit of speculative buying on those counters,” analyst Hasnain Asghar Ali said.

He said pre-budget rally is generally sustained in the post-budget sessions as it is based on some positive leaks and indications are that despite political irritants the trading on the market could be smooth in the coming sessions also.

Leading gainers were led by Colgate Pakistan and Packages, up by Rs23 and Rs12.61. Other good gainers, included Arif Habib Ltd, JS & Co, MCB Bank, National Bank, Shell Pakistan, Pakistan Oilfields, Ferozsons Lab, Glaxo-Wellcom, and Sanofi-Aventis, which posted gains ranging from Rs5 to Rs8.90.

EFU Life and Adamjee Insurance fell by Rs16.50 and Rs13.76, respectively, on renewed selling amid rumours of fresh taxes followed by Attock Petroleum, New Jubilee Insurance, Attock Refinery, Pakistan Refinery, Indus Motors, Sitara Chemical and Clover Pakistan, off by Rs5 to Rs11.45.

Trading volume fell to 131m shares from the previous 145m shares but gainers forced a strong lead over the losers at 197 to 103, with 23 shares holding on to the last levels.

The actively traded shares were led by D.G. Khan Cement steady by 36 paisa at Rs74.61 on 10m shares, Arif Habib Securities, higher by Rs4.10 at Rs173.80 on 7m shares, Bank AlFalah, up by Rs2.27 at Rs48.03 also on 7m shares, National Bank, higher by Rs7.55 at Rs179.55 on 6m shares, Arif Habib Bank, firm by one rupee at Rs21.17 on 5m shares Nishat Mills, up Rs2 at Rs101.99 on 4m shares and MCB Bank, sharply higher by Rs8.90 at Rs305.90 on 4m shares.

Other active were led by NIB Bank, up 49 paisa at Rs13.40 on 6m shares, Lucky Cement, firm by one paisa at Rs111.40 on 4m shares and Pakistan Reinsurance Co, higher by Rs2.85 at Rs100.35 also on 4m shares.

FORWARD COUNTER: The provisionally listed Engro Polymer led the list of actives on the cleared list, easy by Rs1.23 at Rs38.25 on 8m shares followed by MCB Bank, higher by Rs9.85 at Rs306.85 on 4m shares and D.G. Khan Cement, firm by 80 paisa at Rs75.30 on 3m shares.