Pakistan stocks close above 85,000 points for the first time

Pakistan stocks crossed the 85,000 points mark for the first time on Tuesday, driven by strong performances from banks and exploration & production (E&P) companies.

The market reached an all-time high, led by blue-chip oil stocks, buoyed by a positive earnings outlook and the stability of the rupee. This surge followed reports of commitments for $3.2 billion in foreign loans, including $1.2 billion from the Saudi Oil Facility.

The biggest contributors to the index gains were Bank Al Habib (+6.56%), Habib Bank (+6.7%), and Engro Fertilizer (+3.8%).

The KSE-100 index gained 0.89% or 753.68 points to close at 85,663.98 points.

Separately, Indian stock indices rebounded into positive territory. Analysts credit this recovery to a mix of bottom-fishing by investors.

Despite a recent downturn, Indian stocks had previously gained from the US Federal Reserve’s significant 50 basis point interest rate cut, which has been encouraging capital inflows into emerging markets like India. Foreign portfolio investors (FPIs), who have been net buyers for the past four months, continued to support the Indian markets through September.

India’s BSE 100 Index gained 1.18% or 307.90 points to close at 26,499.64 points.

The Dubai Financial Market (DFM) General Index gained 0.77% or 33.95 points to close at 4,429.00 points.

Commodities

Crude oil prices reversed some of their gains on Tuesday as traders shift their focus back to concerns over Chinese demand.

Earlier, oil prices maintained their upward momentum, with Brent crude surpassing $80 per barrel for the first time in months. This followed five consecutive days of gains driven by escalating tensions between Israel and Iran.

However, the war premium appears to be diminishing quickly. Traders seem hesitant to wait more than a day for Israel’s response to Iran’s missile attack last week. The longer the delay between the attack and any retaliation, the weaker the oil benchmarks become, as seen in similar Middle Eastern events earlier this year.

Brent crude prices fell 2.01% to $79.30 per barrel.

Gold prices remained relatively stable in Asian trade on Tuesday, following a decline from record highs as traders adjusted their expectations for smaller interest rate cuts by the Federal Reserve.

This week, the market’s attention is on further signals from the Fed and key inflation data, which are expected to influence the outlook for interest rates.

Gold had reached record highs in September after the Fed reduced rates by 50 basis points and initiated an easing cycle. However, uncertainty about the Fed’s future rate cut pace led to a pullback in gold prices.

International gold prices gained 0.29% reaching $2,651.01 per ounce. In Pakistan, gold prices declined PKR 1,000 to PKR 274,700/tola on Tuesday.

Currency

US dollar remained steady against PKR, up 0.1% in the inter-bank market. Pakistani currency settled at 277.67, a loss of three paisas against the US dollar. In the open market, the USD was trading at PKR 280.