Karachi stocks close 1.9% higher

Karachi: Pakistan's Karachi Stock Exchange 100 Index rose 183.11, or 1.9 per cent, the most in five months, to 9,611.55.

Bank of Punjab Limited. Pakistan's biggest regional lender, rose 0.9 per cent to Rs12.78 Wednesday, its first gain in four days, after the former chief executive accused of fraud appeared in court after being extradited from the United States.

Hamesh Khan, charged in a loan scam, appeared before the Supreme Court in Islamabad Wednesday, Pakistani television channels reported.

"Each development in the case increases hopes of recovery of loans, which is a positive sign for investors," said Khalid Iqbal Siddiqui, head of research at Invest & Finance Securities Limited in Karachi.

Khan denies the charges, according to Mahmood A. Shaikh, his lawyer in Lahore.