KARACHI: Shares ended higher on Tuesday, buoyed by cement companies on expectations of strong year-end results and a comeback by K-Electric Ltd, the country's biggest power company, which came under fire after at least 1,200 people succumbed to a searing heatwave.

The benchmark 100-share index on the Karachi Stock Exchange closed up 0.90 percent, or 305.31 points, at 34,398.86.

Earlier this month, the worst heatwave to hit Karachi for nearly 35 years killed more than 1,200 people as morgues ran out of space and residents rushed to supply over-stretched public hospitals.

The heatwave coincided with severe electricity cuts, leaving many without fans, water or light, and the beginning of the holy month of Ramazan, when many do not eat or drink during daylight hours.

Shares of K-Electric, which was being blamed for much of the crisis, ended up 1.7 per cent higher on Tuesday.

A delegation of National Electric Power Regulatory Authority visited K-Electric on Monday for inspection, but lack of any punitive action boosted investors' confidence, traders said.

“A rumour was also in the market that the CEO of K-Electric has resigned. This morning, the company issued a clarification that nothing as such has happened, restoring investors' interest,” said Amreen Soorani, a senior analyst at JS Global Capital Ltd.

The company has said it is doing its best to tackle the daily blackouts.

Expectation of an increase in cement prices also pushed up stocks, said Samar Iqbal, a dealer at Topline Securities.

Maple Leaf Cement Factory Ltd rose 5 per cent, while Fauji Cement Co Ltd gained 1 per cent.

Unilever Pakistan Foods Ltd rose 5 per cent, while Nestle Pakistan Ltd lost 2.49 per cent.

The rupee closed at 101.75/101.80 against the dollar, slightly weaker from Monday's 101.73/101.78.

Overnight rates in the money market remained flat at 7 per cent.