KARACHI - The approval of the rules and regulations related to Margin Trading System (MTS) by the KSE Board gave a considerable boost to the local stock market on Tuesday, as the KSE 100-share index once again crossed the psychological barrier of 12,000 points. The 100-index closed at 12,078.2 points after gaining 132.19 points. The same index had closed at 11,946.09 points on Monday. Market turnover improved to 97.04 million shares against 68.83 million worth of shares traded previously. Total capitalization reached Rs3, 270.73 billion or $38.42 billion while trading value stood at Rs3.56 billion or $41.78 million, respectively. According to a daily market report, the KSE 30-index ended higher at 11,688.94 points mark, adding 142.40 points (up 1.23pc) to the index. The report showed that KSE future volume was recorded at 4.50 million shares and total value under KSE 30-index came at Rs532.62 million. KSE future spread was registered at 2.14 per cent. Bullish activity was witnessed in the oversold market after margin trading regulations were approved by KSE board, raising investor expectation of early launch of leverage products. Positive sentiment prevailed throughout the trading session in scrips across the board on renewed institutional and foreign interest ahead of major earning announcements this week, said Ahsan Mehanti, Director Arif Habib Investments Limited. Speculative buying sparked an across the board short-covering certainly found support of fresh funds placement in high dividend yielding stocks, trading with the topping of recently announced payouts, allowed the local bourse to stage a pull-back. Leading from the front were indeed the Fauji group stocks from fertilizer sector. Various mid-tier stocks invited accumulation on charm of short term capital gains, said another senior analyst, Hasnain Asghar Ali at Aziz Fida Hussein & Co. According to analyst, various main board stocks on back of short covering and speculative stocks followed the trend, which allowed the index to get triple digit gains and sustain above 12000, while turnover was contributed by Lotte Pakistan PTA. He further said the news of MTS approval that was being attributed as main reason for the bull-run was probably a regulatory formality and the procedural matter, the approval of the product that was apposed by the previous Chairman thus making it mandatory for the KSE board to give a formal approval to complete the procedural cycle. The newly proposed product can only be implemented after the product is received by SECP and then forwarded to the KSE board for implementation, and then only the regulations will be officially released for the market men to assess its productivity, thereby keeping the cautious stance alive, he informed. He was of the view that since the issues on economic and financial front are still persisting at alarming levels along with threat of likely downgrading by international rating agencies due to fiscal imbalance, strength in high priced, and highly leveraged stocks on speculative or technical activity should therefore be capitalized, while the funds identified for equity market investments should be placed in stocks from relatively safer sectors, offering high dividend yields along with various mid-tier stocks, having limited downside, timeline for leverage product launch. The release of the products regulations will play a decisive role in identifying the market momentum, he opined.