KARACHI - The Karachi stock market started the week on a bullish mood as the investors sharply participated in the oversold market over strong valuations. On Monday, the benchmark KSE-100 index closed higher at 11,289.23 level, adding 65.71 points or 0.59 per cent to the index. The KSE index had closed at 11,223.52 points mark on Friday last. Market volume declined to 86.23 million shares from 158.8 million shares traded previously. According to stock market report, KSE capitalisation recorded at Rs3, 058.04 billion or $35.68 million as compare to previous trading value stood at Rs3.39 billion or $39.54 million. The KSE-30 index rose 183.85 points to close at 10,940.68 level. The index increased 1.71 per cent. KSE future volume came at 4.79 million shares and its value accounted for Rs538.79 million. KSE future spread was at 0.18 per cent. Short covering triggered by fresh inflow mainly by the government treasuries allowed the benchmark to attain healthy closing despite maximum decline in the values of OGDC. It was indeed a positive trigger. However, low volumes depicted lack of wider follow-up due o gloomy situation on various fronts, said Hasnain Asghar Ali, an analyst at a local brokerage house. He said that the local bourse gave a positive posture during initial trades, where in the main board stocks having a healthy dividend history along with growth potential, did invite renewed accumulation by the resident participants, the unofficial announcement of early launch of MTS was then duly circulated in order to firm up positive sentiments. Absence of follow-up support as depicted by low turnover and sell-off in high priced stocks mainly OGDC by the exit seeking aliens and locals executing from beyond boundaries, however, made life miserable for the resident participants, in, for creating positive sentiment, mainly for a short term punt most probably before making an exit, he said. According to an analyst, corporate accumulation in various main board stocks, mainly from the government treasuries supported the sentiment building exercise, cued-up sellers on strength but kept majority accumulators mainly on back-foot, except for change of hands on strength in selective stocks, during closing hour. Alarming issues on sensitive fronts disallowed follow-up support, while red numbers kept the panic sellers active in high priced stocks, corporate accumulation allowed hand-full stocks from main board to sustain gains attained during early trade, he said. Tough decision likely to be taken by the government of increasing the rates of petroleum products without compromising on high taxes being charged on sale of petroleum products and covering the revenue short fall by decreasing high and non-productive expenses, might lead to social and political un-rest, although political issues, will be for gaining political mileage, while social issue might arise, as it will reduce purchasing power of the locals already facing tough time, he predicted.