KARACHI - After suffering heavy losses the previous day, the stock market rebounded on the last day of the week in thin trade as cautious investors remained on the sidelines ahead of a meeting between members of the Karachi Stock Exchange and the Federal Bureau of Revenue (FBR). A member of the FBR is scheduled to meet with KSE members on Saturday (today) to discuss the capital gains tax which was announced in the budget for 2010/11. Renewed foreign and local institutional interest in blue chip scrips, rise in international oil prices and expectation of resolution of Capital Gains Tax issue played a key role in the positive activity. The Karachi Stock Exchange (KSE) benchmark 100-share index gained 0.97 percent, or 91.34 points, to close at 9,471,12. However, turnover fell to 67.76 million shares, compared with 100.51 million shares traded a day earlier. The KSE 30-index closed at 9412.29 with a gain of 91.96 points. The KMI 30-index closed at 14455.10 with a gain of 144.20 points. All shares index closed at 6646.74 with a gain of 65.15 points. Trading activity was minimal as compared to the last trading session as the ready market volume stood at 67.859m as compared to last trading sessions 100.724m. Future market volume however stood at 3.258m shares as compared to 5.317m shares of last trading session. Market capitalization stood over Rs2.674tr. Total trades decreases to 46,430 as compared to last trading session 66,570. 250 companies advanced, 110 declined and 20 remained unchanged. Highest volumes were witnessed in LOTPTA at 13.074m, closed at Rs9.37 with a gain of Re0.29, followed by LPCL at 7.633m, closed at Rs2.85 with a gain of Re0.03, and JSCL at 4.603m, closed at Rs12.15 with a gain of Re0.16. Analysts said selling intensity reduced, as the assumption that FBR will accept the relaxations proposed by the KSE management of CGTs reporting and assessment. They added that rising trend in the regional and international equity and oil markets formed a case for the technical breather, through target buying by state-owned funds and low quantum rate influx in OGDC. They pointed out that although turnover stayed on lower side, the intent to restrict bears was achieved comfortably. They added that stocks accumulated from previous sessions did offer resistance to the surge; low quantum offers however restricted red number from surfacing. They further said although relaxations by FBR if extended will allow the local bourse to consolidate, depending on the relaxations offered, various issues on economic front like latest being rising inflationary pressures, and irking circular debt and poli-judicial front will however continue to disallow smooth movement at the local bourse. They pointed out that in case the relaxations are turned down, the bearish run up will continue. Therefore, the recommendation to stay selective and calculative continues with focus on consistent double-digit dividend yields and lower multiples.