Pakistan stocks surge amid optimism over fiscal discipline and IMF prospects

Pakistan’s stock market rallied Thursday as investor sentiment strengthened on expectations of fiscal discipline and potential inflows from the International Monetary Fund (IMF), analysts said.

The benchmark index closed higher, with cement, commercial banks, and oil and gas exploration companies leading the charge, collectively adding 388 points to the index.

“Optimism was fueled by signals of upcoming tax relief for the salaried class and alignment of the upcoming budget with IMF guidelines,” said an analyst at JS Global Capital. “Despite no breakthrough in ongoing IMF talks, markets responded positively to macroeconomic clarity.”

The local bourse opened strong and maintained bullish momentum throughout the session, reflecting investors’ confidence in the economic outlook, an analyst at Topline Securities said.

An analyst at Ismail Iqbal Securities noted that market participants were positioning themselves ahead of further clarity on fiscal measures, showing cautious optimism.

KSE-100 index gained 0.54% or 638.50 points to close at 118,971.41 points.

Currency

US dollar eased against PKR in the inter-bank market. Pakistani currency gained 10 paisas to close at 282.07. In the open market USD was trading at PKR 284.15.

Indian Stocks

The Indian stock market closed higher on Thursday, following positive global trends. Investors showed strong interest in buying large, mid-sized, and small stocks, leading to better performance in broader market indices.

Global confidence improved after a US court overturned Donald Trump's tax policy. However, the Indian market stayed mostly stable during the day because of rising oil prices and higher US bond yields.

Towards the end of the session, more buying happened, partly due to traders covering short positions ahead of the monthly futures and options (F&O) expiry.

BSE-100 index gained 0.33% or 86.31 points to close at 26,017.47 points.

DFM General Index shed 0.61% or 33.88 points to close at 5,492.66 points.

Crude Oil

A U.S. trade court decided that President Trump went beyond his power by putting tariffs in place, confirming that Congress has control over trade decisions.

Oil prices went up because traders saw the ruling as a positive sign, along with strong demand forecasts easing worries about too much supply.

Experts are still cautious since OPEC+ is expected to increase oil production, and new U.S. sanctions on Russian oil may not have a big effect.

Brent crude prices increased by 0.39% to $65.15 per barrel.

Gold Prices

Gold prices went up on Thursday because investors took advantage of a recent price drop to buy. However, the increase was limited due to improving trade relations between the US and the EU.

Now, the market is waiting for an important US report on consumer spending, which could give hints about future interest rates.

International gold prices increased 0.12% to close at $ 3,302.23 per ounce. In the local market, gold prices remained flat at PKR 3,600 to 349,300 per tola.