Pakistan stocks close higher after a volatile session

Pakistan stocks saw significant volatility on Wednesday, largely due to geopolitical tensions in the Middle East.

Stocks closed higher amid falling inflation on rupee stability, fall in global prices and agriculture growth.

S&P projection over rate cut of 200bps by FY25, 20% increase petroleum sales and surging global crude oil prices supported the bulls.

The KSE-100 index gained 0.2% or 162.41 points to close at 81,967.01 points.

Indian stock exchanges were closed on Wednesday.

The Dubai Financial Market (DFM) General Index shed 0.83% or 37 points to close at 4,440.27 points.

Commodities

Oil prices rose on Wednesday as investors reacted to escalating tensions in the Middle East following Iran's missile attack on Israel.

Concerns over disruptions to energy supplies intensified, driving market uncertainty and pushing prices higher.

As the situation develops, traders and governments are keeping a close eye on the Middle East, understanding that the ongoing conflict has the potential to reshape the global energy landscape.

Brent crude prices surged 2.71% to $75.55 per barrel.

Gold eased on Wednesday, taking a breather after rallying in the last session on an escalation in the Middle East conflict, while traders waited for more clues on U.S. interest rates. Analysts say gold is just seeing some short-term pressure due to a stronger dollar but the environment remains extremely favourable for gold.

International gold prices shed 0.34% reaching $2,651.56 per ounce. In Pakistan, gold prices increased by PKR 600 to PKR 275,500/tola.

Currency

US dollar eased further against PKR, down 0.01% in the inter-bank market. Pakistani currency settled at 277.63, a gain of three paisas against the US dollar. In the open market USD was trading at PKR 280.