Pakistan's stock market surged to new heights Thursday as investor confidence strengthened ahead of key economic indicators and upcoming budget announcements. The benchmark index closed at an all-time high, driven by steady buying interest and bullish sentiment across major sectors.
The KSE-100 index climbed as much as 1,453 points during intraday trading before settling with an impressive gain of 1,425 points, finishing at 119,961—a 1.20% increase from the previous close. Analysts attributed the rally to growing optimism surrounding anticipated policy measures aimed at bolstering the economy.
“The market continued to inch upward. Steady buying interest reflected growing confidence ahead of key economic cues,” said an analyst at Ismail Iqbal Securities.
Refinery stocks ended the day in positive territory following sector-specific developments. The government is reportedly working to finalize a binding legal framework between oil marketing companies (OMCs) and refineries. Key clauses such as take-or-pay provisions aim to resolve ongoing disputes over product upliftment and high-speed diesel (HSD) imports, a move expected to bring clarity and stability to the sector’s supply chain.
“The bulls took charge of the local bourse on Thursday,” said an analyst at Topline Securities, noting that the surge was fuelled by optimism surrounding upcoming budget announcements.
Commercial banks, oil and gas exploration companies, and fertilizer firms emerged as the day's top performers, cumulatively adding 719 points to the index.
KSE-100 index gained 1.2% or 1,425.39 points to close at 119,961.91 points.
Currency
US dollar eased against PKR in the inter-bank market. Pakistani currency gained 11 paisas to close at 281.61. In the open market USD was trading at PKR 283.75.
Indian Stocks
India's equity markets surged by approximately 1.5% on Thursday following U.S. President Donald Trump's announcement that India had proposed a zero-tariff trade agreement with the United States, boosting investor confidence in a potential deal.
Analysts believe that such a tariff-free arrangement is unlikely to negatively impact Indian industries, citing differences in manufacturing structures and the premium pricing of American exports.
Trump's statement also suggests that a trade agreement is on the horizon, which could encourage sustained foreign investments.
BSE-100 index gained 1.44% or 372.11 points to close at 26,159.91 points.
DFM General Index gained 0.96% or 51.68 points to close at 5,411.40 points.
Crude Oil
Oil prices saw a sharp decline after President Trump stated that the U.S. is nearing a nuclear agreement with Iran.
Iranian officials have expressed openness to halting uranium enrichment, provided the U.S. removes economic sanctions.
Additional downward pressure on oil prices was driven by reports of a buildup in U.S. crude oil inventories.
Brent crude prices decreased by 3.4% to $63.84 per barrel.
Gold declined on Thursday as traders reacted to rising tensions ahead of Ukraine-Russia negotiations in Turkey. Earlier in the session, the precious metal took a sharp downturn following remarks from U.S. President Donald Trump, prompting investors to take profits and reduce their gold holdings.
During a visit to the Middle East, Trump suggested that nuclear deal discussions with Iran were possible, according to CNN. He further emphasized that Syria and Yemen deserved an opportunity for peace, a statement viewed as a significant step toward easing regional conflicts.
These developments signaled a potential reduction in global geopolitical risks, leading to further gold sell-offs. Additionally, progress in trade negotiations added to the downward pressure on the metal's price.
International gold prices decreased 0.37% to close at $3,174.95 per ounce. In the local market, gold prices decreased PKR 6,700 to 335,200 per tola.
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