ISLAMABAD: Pakistan’s main stock market closed up on Monday, buoyed by hopes that ties between Islamabad and Washington could improve in the coming week, analysts said.

The Karachi Stock Exchange benchmark 100-share index rose 0.65 per cent, or 88.33 points, to close at 13,754.13 points on volume of 61.47 million shares, compared to 13,657.88 on Friday.

“The market started the week on a high because of positive news about Pakistan-US relations in the last few days. Investors are hopeful of good news during the week,” said Atif Zafar, a research analyst at the JS Global financial services company.

The United States and Pakistan are at an impasse in difficult negotiations to repair ties, which would clear the way for the re-opening of overland supply routes through Pakistan to Nato forces in Afghanistan.

Islamabad blocked the routes last year to protest against the deaths of 24 Pakistani soldiers in a cross-border Nato air attack in November. The lines have been vital for US-led forces in their involvement in landlocked Afghanistan, a conflict now in its 11th year.

Now, the routes are seen as important for the withdrawal of most foreign troops from Afghanistan before the end of 2014.

The market was boosted by the fertiliser sector with investors expecting better performance because of a rise in product prices by two major companies, dealers said.

“Fauji Fertilizer and Fauji Bin Qasim raised prices which boosted their prices,” said Shuja Rizvi, a dealer at Al-Hoqqani Securities.

The Fauji Fertilizer company rose 1.41 per cent to close at 110.75 rupees, and the Fauji Fertilizer Bin Qasim company closed 1.96 per cent higher at 41.6 rupees.

Rupee firms

The Pakistani rupee firmed to close at 93.97/94.04 against the dollar, compared to 94.13/18 on Friday.

Overnight rates in the money market closed flat at 11.90 per cent.