Pakistan stocks surge as institutional buying fuels rally

Pakistan stocks surged Tuesday, continuing its bullish momentum as strong institutional buying, particularly from local mutual funds, fueled investor confidence.

“The positive sentiment from the previous session carried forward, driven by robust institutional interest,” an analyst at Topline Securities said.

KSE-100 index gained 9.45% or over 10,000 points on Monday in the record single-day gains following the news of a ceasefire with neighboring India and approval of second trance of IMF extended fund facility.

Market analysts attributed the rally to strong performances in key sectors.

Oil and gas exploration companies, cement producers, and oil and gas marketing firms collectively contributed 1,368 points to the index’s gains, an analyst at Ismail Iqbal Securities said.

KSE-100 index gained 1.09% or 1,278.15 points to close at 118,575.88 points.

Currency

US dollar gained against PKR in the inter-bank market. Pakistani currency lost 10 paisas to close at 281.67. In the open market USD was trading at PKR 283.15.

Indian Stocks

Indian stocks ended lower on Tuesday, with pharmaceutical shares drawing attention following a sweeping executive order signed by U.S. President Donald Trump on Monday.

The directive mandates drugmakers to adjust their pricing in line with international rates. While the order is expected to have minimal immediate effects on Indian pharmaceutical firms, it could influence their long-term capital allocation strategies.

BSE-100 index shed 1.12% or 290.36 points to close at 25,686.14 points.

DFM General Index gained 0.543% or 28.75 points to close at 5,362.68 points.

Crude Oil

Oil prices climbed on Tuesday, though gains remained constrained by increasing supplies and uncertainty over whether the temporary pause in the U.S.-China trade dispute would pave the way for a lasting agreement.

Benchmark crude prices surged by more than 4% in the previous session following a U.S.-China accord to significantly reduce tariffs for at least 90 days, a move that also buoyed Wall Street stocks and strengthened the dollar.

The market is now assessing the implications of the trade truce. However, with a steep rise in OPEC+ supply set for May and June, the potential for further price increases appears limited.

Brent crude prices increased by 0.83% to $65.50 per barrel.

Gold Prices

Gold prices saw a modest recovery on Tuesday after a sharp 3% decline in the previous session, as investors adjusted to developments in U.S.-China trade negotiations and positioned themselves ahead of a key U.S. inflation report.

Monday’s steep selloff signaled a shift away from safe-haven assets, but technical buyers provided support at crucial levels, stabilizing prices.

However, with the Federal Reserve’s next policy decision dependent on inflation data and broader market sentiment improving, gold remains susceptible to further downside pressure.

International gold prices increased 0.91% to close at $3,255.39 per ounce. In the local market, gold prices increased PKR 3,700 to 344,200 per tola.