KARACHI - The KSE 100-share index once again crossed the psychological barrier of 9,500 points on Thursday amid hopes that the government will agree to some recommendations by brokers regarding the proposed Capital Gains Tax to be imposed from the new fiscal year. Besides, rise in global capital markets and renewed foreign interest in oil, banks, telecom & insurance scrips also played a key role in the positive activity. The KSEs benchmark 100-share index closed 2.54 percent, or 239.83 points, higher at 9,676.71 on turnover of 137.98 million shares. The KSE 30-index closed at 9543.11 with a gain of 245.52 points. The KMI 30-index closed at 14748.50 with a gain of 286.60 points. All shares index closed at 6781.94 with a gain of 158.81 points. Trading activity was better as compared to the last trading session as the ready market volume stood at 138.418 million as compared to last trading sessions 99.350 million. Future market volume however stood at 5.200 million shares as compared to 4.897m shares of last trading session. Market capitalization stood over Rs2.721tr. Total trades increased to 83,718 as compared to last trading sessions 68,673. 244 companies advanced, 151 declined and 17 remained unchanged. Highest volumes were witnessed in LOTPTA at 17.393 million, closed at Rs9.05 with a gain of Re0.09, followed by JSCL at 10.739m, closed at Rs13.26 with a gain of Re1.00, and PSAF at 9.228 million, closed at Rs6.14 with a gain of Re0.89. Analysts said the bulls geared-up after initial decline, despite confusion on various fronts. They said shouts of foreign buying, that triggered massive short covering, thus allowed the benchmark a tremendous recovery. They pointed out that the mark-to-market exercises were also underway, mainly to reduce liabilities that could otherwise increase in case of sale from July 01,2010, the activity not only invited decent and quality turnover it indeed provided various trading opportunities to the market men. They said the initial reaction of the post trial briefing as expected was deep negative, although exempting the retail participants from quarterly submission of CGT returns, will undoubtedly reduce complication. They informed that the repercussion of the new tax will be experienced upon implementation will start in form of reduction in turnover, which is likely to be followed by various events of low volume price erosion, in case of negativity, which already exists in environment. They further informed that initial decline was however well capitalized by recovery initiated on foreign buying, the momentum geared up further on yet another news flash, that finally the management has realized, that it is only a flexible leverage that can reduce the impact of CGT. They said there might not be anything wrong with various stocks, currently trading at deep discounts form recent highs, it is the local strength that disallows comfortable placements in the stocks. They pointed out that whereas, mid tier stocks trading at extreme discounts, and stocks having a good history of consistent dividend flows can be accumulated, at the levels where they are at least at par with the risk free returns, available in the local circuit.