KSE-100 index gains 350.29 points

KARACHI: Karachi stock market closed higher on Tuesday after there was no immediate announcement of sanctions against Pakistan for concluding a gas deal with Iran.

The Karachi Stock Exchange's (KSE) benchmark 100-share index ended two percent, or 350.29 points, higher at 17,872.85 points.

The market had dipped sharply the day before after investors sold shares in anticipation of possible sanctions.

Iran and Pakistan held a ceremony Monday to mark the beginning of work on a gas pipeline, a deal that the US has repeatedly warned may fall foul of a sanctions regime designed to prevent Iran from developing a nuclear bomb.

Engro Corporation and Nishat Mills Ltd closed at their upper limit due to institutional buying, said Samar Iqbal of Topline Securities.

Pakistani stocks can only rise or fall five percent a day, a rule meant to curb volatility in the market.

Foods and Fertilizer Engro Corporation rose 4.99 percent to 128.65 rupees, while Nishat Mills was up 4.99 percent to 78.06 rupees.

In the currency market, the rupee was steady at 97.85/97.90 against the dollar, compared to Monday's close of 97.85/97.90.

Overnight rates in the money market remained flat at 9.40 percent.