ISLAMABAD: Pakistan’s main stock market closed up on increasing confidence following an improvement in ties with the United States, dealers said on Monday.

The Karachi Stock Exchange benchmark 100-share index gained 69.36 points, or 0.48 per cent, to close at 14,379.54 on volume of 71.78 million shares.

“Expectations that (new) US dollar inflows will soon materialise after Nato routes reopened positively affected local equity prices,” said Samar Iqbal, a dealer at Topline Securities.

Islamabad and Washington reached a deal last week to reopen land routes that Nato uses to supply troops in Afghanistan, ending a seven-month crisis that damaged ties between the two countries and complicated the US-led Afghan war effort.  The agreement appeared to include a commitment by the United States to pay Pakistan over $1 billion in military aid arrears.

In the currency market, the rupee closed slightly weaker at 94.13/18 to the dollar, compared to 94.00/07 on Friday. The rupee has been slowly recovering after hitting a record low of 94.59/65 on June 27.

Overnight rates in the money market were unchanged at 11.90 per cent.