KARACHI - Despite clashes in Karachi, the stocks closed up on Tuesday as a few investors bought shares on hopes of strong profits, although trading was very thin. The tension in the city caused the early closure of the market and kept investors on the sidelines. The KSE authorities decided to close the market at 2:30 p.m., an hour earlier than usual. The KSE 100-share index gained 15 points on Tuesday and closed at 10388.64 on the back of institutional support. Although the opening was negative due to law and order situation in the city as the index dropped at 10331.49 in an intra-day day low level. However, healthy buying by institutional support the index to hit 10388.64 to enter a high level. On the other hand, trading activities remained low as the total volume declined to 45.7 million shares. Mostly trading was witnessed in second and third tier of stocks, as Ravi Textile was the volume leader with 3.59 million shares and closed at Rs4.04, up by Re0.05, TRG Pakistan increased by Re0.16 and closed at Rs4.36, Fauji Fertilzer Bin Qasim gained Re0.46 to close at Rs30.19. Market analyst say sensitive law & order situation and an early closure kept the turnover and activity subdued, dips however kept accumulation alive. Rising trend in international oil and equity markets along with buying interest by off-shore participants kept the locals away from the selling window, despite fragile law & order situation, consolidation followed by renewed buying in the stocks from E & P and banking sector did invite partial recovery in textile and fertilizer stocks, mainly by the sellers of post MP session, thus allowing the index to sustain positive after initial set back. Particularly, interest from both local and offshore front was visible in E &P sector stocks due to dual benefit that the sector stocks enjoy, as they gain from rising trend in international oil prices and weakness of the local currency, thus offering a complete hedge against economic downturn and rising inflation, since the leading companies are from the government sector, efficiency of financial and asset management stays on lower side. Low turnover however disallowed even the resident participants to trade at their fuller strength, thereby keeping the upside confined, since the main board stocks without leverage facility have attained decent levels, at least the local participants continue to stay on hold till implementation date of MTS is announced, while off-shore activity being followed for short term trades, dips should therefore be awaited for accumulation while low volume strength and stagnation on strength should be taken as a signal for profit taking, at least till the date for MTS implementation is announced. Although it is funny and casual that flexible leverage product having the potential of subsiding the economic and law & order grievances, but indeed time has proved it as a fact, since the number of participants actively trading from both corporate and retail front is limited improvement in their strength allows optimism to surpass the negative outcome from various fronts, such as economic issues, law & order, political and geo political. Caution however stays the call, with exception of some results those might include hefty stock dividends other results might not excite the existing buyers from the local arena to step in, off - shore reaction on the cash payouts might however be different, update on implementation of MTS might however allow certain main board stocks, making into the ready board leverage eligibility criteria, likely to be the same as those eligible for September deliverable futures, to invite consolidation since the earnings multiples of the privileged will improve upon implementation of flexible product.