KARACHI - Stocks ended higher on Wednesday led by second-and third-tier companies on hopes of healthy corporate results but dealers said investors were likely to remain cautious ahead of a long weekend because of political uncertainty and security worries. The nine points of the Finance Minister, as one of them was regarding providing depth to the capital market, did led to an early excitement. While, as far as providing depth to the capital market is concerned, CFS MKII re-introduction with couple of changes would do the needful. The Karachi Stock Exchanges benchmark 100-share index ended 0.34 percent, or 32.39 points, higher at 9,627.63 on turnover of 109.53 million shares. The KSE 30-index closed at 10026.99 with a gain of 45.65 points. The KMI-30 index closed at 14176.27 with a gain of 30.65 points. All shares index closed at 6826.88 with a gain of 19.48 points. Trading activity was minimal as compared to the last trading session as the ready market volume stood at 147.696m as compared to last trading sessions 191.775m. Future market volume, however, stood at 1.930m shares as compared to 1.402m shares of last trading session. Market capitalization stands over Rs2.769tr, as total trades decreased to 84,686 as compared to last trading sessions 91,812, while 171 companies advanced, 189 declined and 19 remained unchanged. Highest volumes were witnessed in LPCL at 25.451m closed at Rs3.82 with a gain of Re1.00 followed by LOTPTA at 14.085m closed at Rs11.04 with a loss of Re0.07, TRG at 8.683m closed at Rs3.33 with a loss of Re0.07. Some news that affected the market sentiment were: Karachi handed over to Rangers; budget deficit misses Q1 target; spreads surged by 19 basis points in 2009; and Wateen will offer 110mn shares. Similarly the Ministry of Finance (MoF) is scheduled to hold PIB auction today with the total target of Rs10b. It has been highlighted time and again that secondary market yields will remain dependent on liquidity while inflationary expectations also plays vital role in this consideration. As the 10yr. bond rate is considered as a proxy of risk free rates for stock valuations, therefore, the expected cut-off against the last cut-off 12.44 percent would have limited implications in terms of stock valuations and target prices. Despite the said negativity the main board stocks were able to find support after marginal decline, thereby restricting the index from losing value at a rapid pace, as indeed in that scenario the chain reaction will most likely aggravate the selling pressure of the pledged stocks. So to restrict decline by injecting more funds by the existing stake holders was seen as a safe strategy. Hasnain Asghar Ali, a market expert, said, 'Shallowness and high impact cost (that increases with depleting turnover) is likely to make life difficult for the sellers, thereby, keeping the chances of massive price erosion intact. Since many stocks those can influence index are still hovering in the expensive territory bottom is yet to be seen, technical pull back in the mentioned stocks can however provide trading opportunities, lower valuations should however be awaited for portfolio placements in the main board stocks.