KARACHI - The Karachi stock market witnessed intense buying on Wednesday on renewed foreign interest in blue chips as the 100-index added 153.78 points to close at 8916.18 points. Investors took positions in oversold scrips in oil, banks and fertilizer sectors. Rise in international oil prices, expectation on release of next IMF tranche in next few weeks and favourable CPI data played a catalyst role in positive activity at the KSE. The KSE 100-index opened in red zone with a loss of 38.44 points and at the end of the day closed at 8916.18 with a gain of 153.78 points. KSE 30-index closed at 9397.34 with a gain of 204.26 points. KMI 30-index closed at 12964.69 with a gain of 331.19 points. All shares index closed at 6329.78 with a gain of 102.39 points. Trading activity was better as compared to the last trading session as the ready market volume stands at 140.416m shares as compared to last trading session 68.003 million shares. Future market volume however stands at 2.999m shares as compared to 1.847m shares last trading session. Market Capitalization stands over Rs2.579tr. As many as 225 companies showed advance, 108 declined and 23 remained unchanged. Highest volumes were witnessed in JSCL at 21.702 million closed at Rs28.14 with a gain of 0.13 followed by AHSL at 16.336 million closed at Rs48.31 with a gain of 2.30, PTC at 10.197 million closed at Rs.18.05 with a gain of Rs.0.28. Hasnain Asghar Ali at Aziz Fidahusein said negativity on opening did allow a technical bounce back, as the local equity market saw decline in OCT-inflation numbers (ignoring the shortage and increasing prices of commodity in local markets) and positive report by Credit Suisse, as trigger, thereby endorsing 8700 as short term support. Besides reiterating their June end target of 11200, likelihood of 50-100 bps in local interest rates was also expressed. Delay in passing the high prices of international oil prices still holds high chances of increase in upcoming fortnightly review and high government borrowing was something that was ignored in the estimated target of local interest rate. While, increased funding and loans was taken as the likely saviour from the fiscal melt down. Nevertheless, local bourses had a good initial trading hours, as the turnover came in, thanks to securities (investment) companies, where despite red numbers initially high volumes were traded, that contributed almost 30 percent to the entire turnover, besides that short-term interest was prominent in low value and high priced stocks, mainly those identified in the report by foreign participants, snap rallies in targeted stocks however stayed quite prominent. Thus keeping day traders busy in identifying stocks, for day trades. Short term trades however suggest that confidence level of local participants stays low while the off-shore participants look busy building the sentiment, for an easy exit, that might be disallowed mainly due to clipped strength of the local participants. They waited for low multiples and double digit yields for making fresh and long term bets, or for introduction of user-friendly ready board leverage (a modified CFS) that will allow the participants having futuristic positive view to build long positions. The stagnation due to vacuum in strength of locals and off-shore participants will continue to keep events of stagnation led low volume price erosion alive, until either the values adjust to the local strength or the foreign participants come in as buyers at prevailing levels (which looks unlikely), snap rallies in form of technical rallies may however stay a prominent feature, short term trades may therefore be under taken, while strength in the high priced stocks should be capitalised.