KARACHI (Reuters) The Karachi stopck market closed higher on Monday as investor sentiment got a boost after the surprise rate cut by the State Bank. "Good news at the weekend with regards to the surprise reduction of 50 basis points in policy rate, coupled with rebound in Asian markets helped the market," said Samar Iqbal, a dealer at Topline Securities. The Karachi Stock Exchange's benchmark 100-share index ended 0.52 percent, or 63.02 points, higher at 12,253.39 .APP adds from Islamabad: Islamabad Stock Exchange witnessed bullish trend on Monday as the index ended at 2765.15 points after gaining 19.30 points. Manager First National Equity Pvt Ltd, M.M. Hassan said that cut in interest rate by State Bank of Pakistan (SBP) was a step leading towards investor-friendly atmosphere and contributed positive to market. He said that market performed well by witnessing bullish trend on Monday. Senior Equity Dealer, Ismail Iqbal Pvt Ltd, Zaheer Ahmed said that the decrease in interest rate by SBP boosted confidence of investors in the stock markets. He said that cut in interest rate would benefit those sectors which were running their business on leverage, like cement, fertilizer and textile sectors. He further added that fertilizer and oil sectors remained favourite for investors here on Monday for intra-day trading. Total shares traded were 48,005, which were up by 16,005 as compared to the previous day.