KARACHI - The stock market closed almost flat on Friday as investors restricted trade to second-and third-tier shares and booked gains at higher levels. The Karachi Stock Exchanges benchmark 100-share index, which opened in the green zone with a gain of 12.42 points, ended 0.03 percent, or 3.07 points, higher at 9,805.87 on turnover of 129 million shares. The intra-day high was at 9,881.77 points. Though there were positive news flows regarding some development on resolution of the circular debt issue and inauguration of a gas processing plant at the Hala field of PPL (65% stake holder), they were overshadowed by the capital gain tax recommendation for Stock Exchanges for the year 2010-11. A rumour regarding imposition of a Rs700mn tax penalty on a few brokers also dampened sentiments; as positive activity was witnessed on institutional support in fertilizer, banks, while profit taking was witnessed in oil sector on rising circular debt issue in the power sector. Meanwhile, the KSE 30-index closed at 10174.92 with a loss of 23.77 points. The KMI 30-index closed at 14434.14 with a loss of 25.04 points. All shares index closed at 6956.52 with a gain of 7.52 points. Trading activity was better as compared to the last trading session as the ready market volume stood at 221.787mn as compared to last trading sessions 156.840mn. Future market volume, however, stood at 3.079mn shares as compared to 1.033mn shares of last trading session. Market capitalization stood over Rs2.820tr, as total trades increased to 94,837 as compared to last trading sessions 76,451, while 211 companies advanced, 139 declined and 18 remained unchanged. Highest volumes were witnessed in LPCL at 25.794mn closed at Rs. 4.35 with a loss of Rs. 0.13 followed by DSFL at 19.843mn closed at Rs. 2.80 with a gain of Rs. 0.65, DCL at 13.567mn closed at Rs. 3.50 with a gain of 0.41. Ahsan Mehanti at Shehzad Chamdia said the local investors remained concerned over FBR claims on stockbrokers, and rising international oil prices, rising global equity markets and expectation of strong results announcements in banks, fertilizer next week played a catalyst role in positive activity. The anticipation of healthy payouts mainly stock dividends and higher earnings, due to FSV relaxation, provided in the fag end of the previous quarter kept the sentiment high mainly in the medium sized banks. Moreover, prolonged stagnation and inability of the main board (expensive) stock to invite new buyers led to a sell-off, price erosion was visible in some main board stocks mainly due to the absence of buyers on intervals. Hasnain Asghar Ali, a market expert, said a stringent product that is close to previously available in-house financing cannot be a trigger, however incase of healthy investment environment the product can be a facilitator for turnover generation. Day end squaring coupled with sell-off in main board stocks kept the benchmark on the lower side, below par stocks contributed to a decent rise in turnover, as compared to previous session, he added.