KARACHI: Pakistani shares ended higher on Thursday, after investors reacted positively to the US Federal Reserve’s interest rate hike, traders said.

The benchmark 100-share index of the Karachi Stock Exchange closed up 1.21 percent, or 394.94 points, at 33,109.54.

The US Federal Reserve raised interest rates for the first time in nearly a decade on Wednesday, signalling that it had faith that the US economy had overcome the 2007-2009 financial crisis.

The move had been widely anticipated, and the final decision to raise rates brought stability to the Pakistani market, said Mohammad Rizwan, head of sales at Topline Securities Pvt Ltd.

Despite a drop in global oil prices, attractive valuations pushed investors to buy index heavyweight energy stocks on Thursday.

Oil and Gas Development Co. Ltd. rose 3.69 percent to close at 117.67 rupees, and Pakistan Petroleum Ltd. rose 5 percent to close at 122.31 rupees.

Other index heavyweights that rose included MCB Bank Ltd, which closed up 0.99 percent at 218.86 rupees and Habib Bank Ltd, which ended 1.86 percent higher at 219.28 rupees.

The rupee ended steady at 104.80/104.90 against the dollar, compared with Wednesday’s close of 104.80/104.90.