OUR STAFF REPORTER KARACHI - The Karachi stock market rose sharply on Tuesday amid fresh buying in the blue chip scrips of the corporate sector, especially banking and cement sectors. The Karachi Stock Exchanges 100-share index increased by 103.34 points or 0.85 per cent to close at 12,314.99 points, against 12,211.65 points on Monday. The KSE recorded a high turnover of 100.02 million shares, in contrast to a total of 95.854 million shares traded a day earlier. The KSE market capitalization also increased in value to close at 3,270.91 billion or $38.06 billion from the last days figures of Rs3, 243.387 billion. Total trading value was recorded at Rs6.59 billion or $46.65 million. The KSE 30-share index surged by 1.01 per cent or 119.21 points to close at 11,903.73 points. The KSE future volume shares amounted to 6.14 million shares, valuing at Rs898.80 million at the rate of 8.93 per cent. Bullish activity was witnessed in scrips across the board after federal budget was termed positive for cement and corporate sectors blue chip scrips, said Ahsan Mehanti, Director at Arif Habib Investments Limited. No major change in banking and other corporate taxation, expectation on early release of next IMF tranche for Pakistans economic support played a catalyst role in bullish sentiment at KSE despite concerns for rising government borrowing, inflation and lower economic growth indicated in Economic Survey 2010-11 unveiled on June 2, he added. Meanwhile, a research report released by a local brokerage house clearly stated that the discontinuation of flood surcharge and no mention of GAT keep the budget neutral for the equity market on the whole. Further, the continuation of CGT for individual investors would keep the investor participation low in the market in the months to come. However, no change in the corporate tax regime for banking and insurance companies eliminates the risk of earnings and valuation downgrade while the reduction in excise duty for cement is likely to bode well for the cement manufacturers.