KARACHI - The Karachi stock exchange on Friday witnessed a bullish trading activity continued with rising volumes on strong valuations. Stocks rose to a 31 month high as foreign investors snapped up energy and fertiliser stocks on hopes of strong corporate results due to be announced in the coming days, dealers said. The expectation of early launch of leverage products by SECP, higher global commodity prices and bright prospects of no significant change in the discount rate in next monetary policy announcement, kept the bulls moving up yesterday. According to the daily market report, the KSE-100 index opened on a positive note and remained firm throughout the day. The index gained 74.10 points and closed at 12,533.54 level from the previous closing of 12,459.44 level. The index surged 0.59pc, ending higher at 12,556.80 and lower 12,459.44 levels. Trading volume reached 300.50 million shares versus 229.46 million shares traded previously. Market capitalization stood at Rs3, 391.27 billion or $39.62 billion while ready market value came at Rs14.44 billion or $168.67 million, respectively. The market statistics revealed that KSE-30 index closed at the level of 12,329.65 points, showing 91.42 points or 0.75 per cent increase in the index. KSE future volume recorded at 12.37 million shares, valuing at 1,338.74 million with future spread of 8.75 per cent.The top five volume leaders were: Fauji Fertilizer Bain Qasim Limited, Lotte Pakistan PTA, Azgard Nine, D.G.K. Cement and Jahangir Siddiqui and Co. Fauji Fertilizer showed a turnover of Rs30.560 million followed by Lotte Pakistan, which earned Rs29.256 million through trading its shares at the market According to the market expert, the anticipation of early launch of the new leverage product kept the bulls going, although expensive stocks faced off-loading by the corporate and well-informed participants (buyers from previous sessions) having an access to the privileged information regarding development on leverage product, as they opted to book profits. However, renewed buying in the stocks offering consistent yields and those carrying potential of substantial rise in valuation after the introduction of ready-board leverage mechanism, along with high interest of the financial groups in their respective listed stocks and not far behind on gains and turnover, were the listed holding companies on likely portfolio appreciation, kept the positivism alive, thus keeping the bench-mark and the turnover on gaining grounds. Likelihood of improvement in stock valuations after introduction of ready board leverage, as it will certainly increase the trading capacity of the local participants, while high quantum activity by the off-shore participants is likely to be an add-on, gloomy economic and financial horizon along with volatile political and law & order fronts will however keep nervousness visible, nevertheless, selective and calculative activity in fundamentally strong speculative and liquid stocks will prove prudent.