KARACHI: Pakistan's stocks closed higher, with unending foreign inflows taking the market to a new high.

Led by heavyweight Muslim Commercial Bank, the benchmark KSE posted gains, which were supported by Pakistan Telecommunication Co Ltd, Pakistan State Oil Co Ltd and Lucky Cement.

Low priced stocks remained speculators' favorites, dealers said.

The Pakistan State Oil Co Ltd was up 1.23 percent at 302 rupees while Muslim Commercial Bank closed up 4.43 percent at 281 rupees.

The Karachi Stock Exchange's benchmark 100-share index closed 0.88 percent, or 193.66 points, higher at 22,274.51.

The rupee ended weaker at 98.53/98.57 against the dollar compared to Monday's close of 98.46/98.51

Overnight rates in the money market fell to 7 percent from Monday's close of 9.40 percent.