Pakistan stocks surge in a banks-led rally

Pakistan’s stock market closed higher Monday, fueled by a strong rally in banking stocks following better-than-expected financial results. Cement and power sector shares also performed well, benefiting from declining coal prices.

Ahsan Mehanti, an analyst at Arif Habib Corp, said the market saw bullish momentum across various sectors, driven by investor speculation ahead of major earnings announcements expected this week.

“The imminent receipt of the IMF’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) tranche next month, alongside the likelihood of monetary policy easing by the State Bank of Pakistan due to thin inflation, acted as catalysts for the bullish close at the Pakistan Stock Exchange (PSX),” Mehanti said.

An analyst at Ismail Iqbal Securities noted that the benchmark index finished in positive territory, largely supported by ongoing earnings season activity.

“Earnings announcements sustained investor interest, prompting selective buying and reinforcing overall market momentum,” the analyst said.

Commercial banks, cement, and power generation and distribution sectors emerged as the session’s biggest gainers, collectively adding 1,006 points to the index.

KSE-100 index gained 0.91% or 1,067.80 points to close at 118,383.38 points.

Currency

US dollar gained against PKR in the inter-bank market. Pakistani currency shed 15 paisas to close at 280.87. In the open market USD was trading at PKR 282.3.

Indian Stocks

Indian stock indices surged for the fifth consecutive session on Monday. Experts expect the upward trend to continue, driven by steady foreign investments and strong global signals.

Despite trade uncertainties from U.S.-China tariffs, indices gained after Trump paused reciprocal tariffs on several countries, including India, for 90 days.

BSE-100 index gained 1.3% or 323.98 points to close at 25,258.66 points.

DFM General Index gained 0.28% or 14.04 points to close at 5,110.97 points.

Crude Oil

Crude oil prices fell at the start of the week, driven by fading hopes for a swift resolution to the Ukraine war and concerns over weaker demand amid tariff uncertainties.

U.S.-Iran nuclear deal talks also influenced the trend. The overall outlook remains bearish, with investors wary of supply-demand improvements due to global trade disruptions and rising OPEC+ output.

Many experts believe tariffs will negatively impact crude demand, despite increased U.S. oil purchases by Asian importers aiming to reduce trade surpluses.

Brent crude prices decreased by 2.44% to $ $66.30 per barrel.

Gold Prices

Gold surged to a record $3,398 on Monday as the weakening U.S. dollar and growing trade policy concerns boosted demand. A cheaper dollar makes gold more attractive globally, while uncertainty over Federal Reserve independence fuels its appeal as a safe haven.

International gold prices increased 2.25% to close at $ 3,389.83 per ounce. In the local market, gold prices increased by PKR 8,100 to 357,800 per tola.