LAHORE - Karachi Stock Market remained closed for three consecutive days owing to falling of Eidul Fitr on Monday while only two possible business sessions could be held in the current week. Post Eid positive developments favoured the local bourse on first business day Thursday which jacks up the equity market to the years highest psychological mark. However, Friday trading session witnessed a reverse growth. The main cause of surging the local market was the approval of Kerry-Lugar Bill amounting to $2.37b and successful US visit of the President Zardari on FoDP forum. Investors hoping that the major amount will be invested in the local equity market. The US congress and on expected successful visit of the President Zardari mainly on grounds of materialisation of commitments made on the forum of FoDP followed by the banking stocks on the expectations of likely changes in banking regulations expected to provide relaxation to under stressed banking sector. The Karachi Stock Exchange (KSE) 100-index gained 228 points to close at 9664 points as compared to 9436.82 points of the previous week as investors drew confidence from improving macroeconomic indicators. It is believed that the countrys economy has been gradually moving towards building basis on sound footings as not only the countrys foreign exchange reserves have now reached to $14.360 billion but also the other indicators have shown considerable positive growth. The inflation eased to a 20-month low in August 2009 as it dropped to 10.69 per cent after edging up 11.2 per cent in July 2009. The downward trend in inflation had started since October 2008, after touching an all-time high of over 25 per cent and the government projected single digit inflation by the year end. The stock market has attracted about $225 million during one and a half month and more foreign investment will flow in to further push up KSE 100-Index in times to come, market sources said. They said that there is hardly any leverage buying in the market and trading was carried out purely on investment basis. Foreign and local investors have returned to Pakistani capital market as they see good return on their investment. The rising foreign exchange reserves, and expected cut in interest rates and cash reserve ration (CRR) and positive expectations from Friends of Democratic Pakistan (FoDP) meeting are other attraction for them, said an analyst. The detail of the week is as, after Eidul Fitr holidays, the first day of business week started on Thursday instead of Monday. Positive developments after Eid vacations favoured the local bourse on Thursday as the KSE-100 index added notable 277 points or 2.94 percent to close at 9,713 points. The momentum found consistency by local participation in low priced stocks of the sectors likely to out perform the economy, some of them hit upper locks and sustained through out the session, the low priced stocks contributed substantially to the turnover besides keeping the sentiment alive, which other wise is a tough task in the prolonged trading sessions. The KSE-100 share index opened with green numbers, up by 75.64 points and market remained in positive zone throughout the session. Benchmark at the end of the day closed at 9,713.83 points with a gain of 277.01 points on Thursday. Meanwhile, junior KSE 30 index closed at 10,477.78 points, adding 331.57 points. Trading activity at the Karachi stock market dramatically inched up to 396.155 million shares as compared to last trading sessions ready market volume of 246.295 million shares. On last business day Friday, profit taking sentiment grabbed the overbought market as the KSE-100 index shed 49 points to close at 9,664 points. Frustrated announcement by donors at FoDP summit played the main role in negative activity at the local bourse. Approval of new trust fund by US besides approving KL bill and commitments by UK and Saudi Arabia, did infuse confidence amongst the local participants. The bull run was, however, arrested early during the session mainly on account of sell-off in the heavily weighed sector, the oil & gas exploration. Investors are happy that benchmark-100 is close to 10,000 points mark and would surpass the barrier in next business week. Trading activity remained impressive as the market turnover edged up to 450.991 million shares as compared to last trading sessions 392.771 million shares.