Pakistan stocks gain as IMF deal boosts market confidence

Pakistan's stock market closed sharply higher Wednesday after an agreement with the International Monetary Fund unlocked $2.3 billion in funding. The deal also bolstered the rupee, which rebounded after four consecutive days of declines.

An analyst at Ismail Iqbal Securities said the announcement of a staff-level agreement on the first review, along with a new 28-month arrangement under the resilience and sustainability facility, invigorated market sentiment and spurred a buying spree.

Key sectors, including oil and gas exploration companies, commercial banks, and power generation and distribution, led the rally, cumulatively contributing 987 points to the benchmark index.

"The local stock market performed strongly," said an analyst at Topline Securities. "The surge was fueled by investor optimism following a staff-level agreement with the IMF, which bolstered market confidence."

KSE-100 index gained 0.98% or 761.7 points to close at 117,772.31 points.

Currency

US dollar steadied against PKR in the inter-bank market. Pakistani currency gained 16 paisas to close at 280.26. In the open market USD was trading at PKR 282.

Indian Stocks

The Indian stock market ended its seven-day rally on Wednesday as investors grew cautious about potential US tariffs under President Trump's administration.

Uncertainty over which tariffs might take effect by April 2 has increased global market volatility. Profit booking after the rally and concerns over sharp valuation rises triggered a sell-off in heavyweight stocks.

BSE-100 index shed 0.77% or 191.28 points to close at 24,522.84 points.

DFM General Index shed 0.23% or 11.98 points to close at 5,105.13 points.

Crude Oil

Crude oil prices have hit a three-week high due to a sharp drop in U.S. oil inventories. President Trump's tariff threats on Venezuelan crude have slowed loadings at Venezuelan ports, tightening global supply.

While sanctions are driving prices up, potential U.S., Russia, and Ukraine deals are adding uncertainty to the market.

Brent crude prices increased by 0.7% to $73.53 per barrel.

Gold Prices

Gold prices stayed steady on Wednesday, but without strong upward momentum. Uncertainty around U.S. President Donald Trump's expected tariff announcement on April 2 supports the demand for gold as a safe haven.

Additionally, the Federal Reserve's prediction of two interest rate cuts this year helps bolster the appeal of the non-yielding metal.

International gold prices declined 0.09% to close at $ 3,018.57 per ounce. In the local market, gold prices remained unchanged at PKR 317,800 per tola.