Pakistan stocks close at all-time high as treasury bill yields decline

Pakistan stocks closed at an all-time high after a massive fall in treasury bond yields, stable forex reserves and upbeat exports in the first quarter of the current fiscal year.

Buying was witnessed across the board with good participation by investors in exploration and production and fertilizer sectors throughout the day.

Going forward, portfolio realignment of institutional players from fixed income to equities is expected to further boost market sentiments.

The KSE-100 index gained 754.76 points or 0.92% to close at 82,721.76 points.

Indian stocks tumbled today due to the escalating tensions in the Middle East amid a growing conflict between Iran and Israel.

Apart from geopolitical concerns, other factors have contributed to the stock market crash, including a surge in crude oil prices, regulatory changes in the F&O segment by the market regulator SEBI and outflows from foreign institutional investors.

India’s BSE 100 Index shed 2.14% or 586.16 points to close at 26,754.34 points.

The Dubai Financial Market (DFM) General Index shed 0.95% or 42.03 points to close at 4,398.24 points.

Commodities

Oil prices rose on Thursday on investor concerns that a widening Middle East conflict could disrupt crude oil flows from the region, though a stronger global supply outlook kept a lid on gains.

Market fears are mounting over the possibility that Israel might target Iranian oil infrastructure, raising the specter of retaliation from Iran.

Brent crude prices surged 1.61% to $75.09 per barrel.

Gold edged lower on Thursday as it stays below the record high of $2,685 set last week. Sellers have the edge over buyers as bets fade that the Federal Reserve (Fed) will continue slashing interest rates aggressively in the United States (US), which, in turn, takes the shine off non-interest-bearing assets like gold.

International gold prices declined 0.46% reaching $2,648.09 per ounce. In Pakistan, gold prices declined by PKR 1,100 to PKR 274,400/tola on Friday.

Currency

US dollar gained some strength against PKR, up 0.03% in the inter-bank market. Pakistani currency settled at 277.74, a loss of 11 paisas against the US dollar. In the open market, USD was trading at PKR 280.