KARACHI - The Karachi stock market closed higher on Thursday due to investors buying in blue chip stocks of the oil companies. The Pakistan Petroleum Limiteds notice of holding an emergent board meeting on June 21 to declare early cash dividend for the shareholders also triggered investor sentiment, pushing a benchmark KSE-100 index up by 51.97 points. The KSE 100-share index closed at 12,369.12 points. Total trade volumes recorded at 45.98 million shares while market capitalisation was amounted to Rs3.268.14 billion or $38.05 billion respectively. The trading value stood at Rs2.33 billion or $27.12 million. The KSE-30 index rose 46.85 points or 0.40 per cent to close at 11,825.25 points. KSE future volume was registered at 2.65 million shares. Announcement of board meeting by PPL for special dividend certainly pulled the local bourse from sinking, speculative buying that was duly followed by short covering and change of hands in the stock had a positive impact on value of traded shares, said Hasnain Asghar Ali, a senior analyst at Aziz Fida Husein & Co. Although the gains registered were much higher than the expected payout, the activity did inspire other stocks of the sector, swapping led sell on strength however restricted the gains, while turnover stayed at alarming levels, he added. Declining trend in the international oil and equity market, dimming chances of incorporation of change proposed in CGT implementation, certainly fuel the negativity at the local bourse, that gave a deserted look, extreme decline in turnover has pushed the KSE at virtual close, however efforts by the local participants both from corporate and high net worth corridors, did restrict the index from otherwise an unprecedented decline, most probably due to prolonged stagnation, that tends to increase pressure mainly in the high priced stocks, according to the analyst. He said that the sell-off was quite visible in the stocks suffering from circular debt, gas curtailment, high and expensive debt, increase in input cost and decline in low and export demand. The fresh influx by the equity specific funds in the stocks, standing strong on the track of growth and offering consistent dividend yields clearly beating the low risk and risk free instruments invited support at discounts, while benchmark found support of low volume influx in index heavy weights, he stated. Non availability of commodities, fuel and fertilisers, extensive power outages, tougher financial issues likely to lead to high deficits in upcoming months on both trade and fiscal deteriorating law and order situation, tough relationship with the biggest donor, 75 per cent cut in aid from the US, official statement by the US regarding presence of high value targets in Pakistan, the mentioned issues are self explanatory, he opined.