KARACHI - The Karachi stock market closed higher on Thursday following the release of Raymond Davis. Bullish activity was witnessed throughout the trading session on the hope that Pak-US diplomatic relations would normalize soon, despite fall in Asian markets on Japan disaster impact on world economy. The KSE 100-index rose by 63.70 points to close at 11,858.27. The index had ended at the level of 11,794.57 on Wednesday. Market volumes were recorded at 117.02 million shares while KSE capitalization amounted to Rs3, 175.97 billion or $37.18 billion respectively. Total ready volume stood at Rs6.26 billion or $73.33 million, according to daily stock market report. The KSE 30-index closed at the level of 11,514.87, adding 71.90 points or 0.63 percent to the index. KSE future volume came at 6.75 million shares, valuing Rs1.245.38 million with a spread of 9.30 percent, the report said. A market analyst at Arif Habib Investments Limited said that expectation of early release of IMF next tranche for Pakistan economic support, rise in global commodity prices and recovery in international oil prices trading around $100 a barrel kept investors positive, triggering them to invest in the oil and fertilizer sectors despite having concerns over impact of new taxes on corporate sector earnings. Reuters adds: Local investors welcomed the end of tensions between the US and Pakistan after the release of Raymond Davis, said Samar Iqbal, a dealer at Topline Securities Ltd. In the currency market, the rupee ended at 85.40/50 to the dollar, little changed from Wednesdays close of 85.43/47, and dealers said the local unit was expected to hold steady, thanks to rising dollar inflows largely from remittances. Remittances rose by 20 percent to $6.96 billion in the first eight months of the 2010/11 fiscal year, compared to the same period the previous year, according to central bank data. In the money market, overnight rates rose to end at top level of 13.90 percent, compared to Wednesdays close of 13.50 percent as dealers said there were some outflows from the market.