KARACHI: Pakistan's stocks closed higher, with market players satisfied to see one political party reaching close to majority vote in the landmark May 11 general elections. Across the board improvement in share prices was witnessed due to a smooth election.

Pakistan's stock market hit a record high Nawaz Sharif looked set to form a government that would be less fragile than expected after the May 11 election, dealers said.

Investors feel that a stable government will force economic leaders to take bold steps to put the economy back on track.

"There is an expectation that the economy will be much better handled by one party, and a pro-business party, leading the government as opposed to an unstable coalition," said Samar Iqbal, of Topline Securities.

Nishat Mills Ltd and Muslim Commercial Bank Ltd also performed well due to buying by institutions, dealers said.

The Karachi Stock Exchange's (KSE)benchmark 100-share index ended 1.65 percent, or 328.55 points, higher at 20,244.82 points.

Muslim Commercial Bank Ltd rose 5 percent to 261.90 rupees. Nishat Mills Ltd was up 4.99 percent to 89.99 rupees.

In the currency market, the rupee ended weaker at 98.40/98.45 against the dollar, compared to Friday's close of 98.37/98.42. Overnight rates in the money market rose to 9.40 percent from Friday's close of 9 percent.