KARACHI - After hitting a two-and-a-half month low the previous day, the Karachi stock market closed more than 3 per cent higher on Tuesday following hopes of reintroduction of margin buying. The Securities and Exchange Commission of Pakistan (SECP) called an emergency meeting on Tuesday at noon with the KSE authorities, to resolve outstanding issues regarding margin trading. Meeting called by the regulator to address the core issue, absence of leverage, that is disallowing the local bourse to perform at its potential, re-invited the bull-run. The thirsty locals barged in the stocks trading at the lowest levels of recent days. The activity initiated by resident participants was soon joined by the corporate players. Short covering thereon allowed the index to register tremendous gains. The KSE 100-index closed at 9813.05 points with a gain of 296.63 points. The KSE 30-index closed at 9699.78 with a gain of 327.70 points. The KMI 30-index closed at 15205.07 with a gain of 465.24 points. All shares index closed at 6849.60 with a gain of 197.15 points. Trading activity was better as compared to the last trading session as the ready market volume stood at 81.645 million as compared to last trading sessions 36.639 million. Future market volume however stood at 2.203 million shares as compared to 1.292 million shares of last trading session. Market capitalization stood over Rs2.741trilion. 229 companies advanced, 109 declined and 20 remained unchanged. Highest volumes were witnessed in LOTPTA at 6.335 million, closed at Rs8.36 with a gain of Re0.32, followed by Arif Habib at 6.704 million, closed at Rs23.37 with a gain of Re0.94, and PTCL at 5.761 million, closed at Rs18.68 with a loss of Rs1.02. The analyst said although participants stayed divided over sustainability of the rally, being the only trigger that has the potential of allowing the lost glory of the local bourse to return despite vulnerability from economic, financial, social and political fronts. They said the bulls clearly denied the views from various fronts suggesting at the current run-up a one off event, realizing the strength due to increase in value of traded shares and return of quality turnover, the sideliners came in to take a feeler. They added that availability of leverage is likely to allow the equity investors to look beyond the floodwaters, however, the gloomy economic outlook and stagnant economy may keep the upside confined initially. Healthy quality turnover will however infuse confidence among the locals that in turn will allow momentum to stay positive. Buyers will however stay more focused on the sectors likely to stay productive in post flood infrastructure recovery. They added that positive outcome of SECP-KSE meeting with a clear timeline for introduction of ready board leverage with any alterations, that may make the product more stringent, will keep the momentum going, at least up to the mark 10500 from were the benchmark started loosing ground, thereby re-affirming the major reason for decline from the point.