KARACHI - The stock market rose sharply on Wednesday in anticipation of a positive outcome of a meeting between the KSE officials and the Senate Standing Committee on Finance about the Capital Gain Tax. Moreover, approval for Rs.41b for PSO, rise in international oil prices and recovery in global capital markets played a catalyst role in the positive activity. The KSE benchmark 100-share index, which opened in the green zone with a gain of 41.51 points, rose 2.01 percent, or 186.33 points, to close at 9,436.88 on turnover of 99.14 million shares. The KSE 30-index closed at 9297.59 with a gain of 193.34 points. The KMI 30-index closed at 14461.90 with a gain of 277.42 points. All shares index closed at 6623.13 with a gain of 130.73 points. Trading activity was better as compared to the last trading session as the ready market volume stood at 99.350 million as compared to last trading sessions 82.953 million. Future market volume however stood at 4.897 million shares as compared to 4.740 million shares of last trading session. Market capitalization stood over Rs2.657trillion. Total trades increased to 68,673 as compared to last trading sessions 61,813. 284 companies advanced, 100 declined and 22 remained unchanged. Highest volumes were witnessed in LOTPTA at 17.650 million, closed at Rs8.86 with a gain of Re0.25, followed by JSCL at 7.053 million, closed at Rs12.20 with a gain of Re0.87, and ANL at 4.443 million, closed at Rs10.58 with a gain of Re0.46. The analysts said the local participants initially declined various factors, which could otherwise have allowed the local bourse to trade with decent turnover. They said although excited low volume run-up led by PSO did allow the benchmark to record an initial high, sell-off on strength. They pointed out that the news flash on electronic media around mid-day however changed the entire dice. They informed that the news that the committee has proposed withdrawal of CGT certainly came in as a surprise. They said although the smart and informed came in for off-loading, the float was duly lifted by the excited participants, thus allowing the index substantial rise. They said sell-off in the so-called defensive stock in previous session however added to the worries of the investors, as the dividend yielding stocks those continue to find buyers and are easily sold. They said usually face off-loading in case of hefty redemption or margin calls, such incidents, with higher frequency, carry the threat of scaring away even the cautious investors.