Pakistan stocks close higher amid earnings season rally

Pakistan's stock market closed higher Tuesday amid an earnings season rally, bolstered by strong financial results in fertilizer, cement, oil, and banking sectors.

Pakistani rupee has slipped to over one year low of PKR 279.69 to a dollar due to pressure of import and debt payments.

The benchmark index showed impressive gains, surging more than 1,500 points in early trading. However, profit-taking throughout the day gradually eroded some of these gains as market is concerned over declining rupee value.

Market sentiment was buoyed by expectations of a reduction in industrial power tariffs, lower February inflation, and positive anticipation from upcoming International Monetary Fund (IMF) review talks next week. These factors played a pivotal role in the bullish close at the Pakistan Stock Exchange (PSX).

KSE-100 index gained 0.17% or 197.98 points to close at 114,528.08 points.

Indian stocks dropped on Tuesday because of both local and global issues. In India, disappointing Q3 results, high stock prices, and a slowing economy are shaking investor confidence.

Globally, concerns are growing due to Donald Trump's tariff announcements, which could lead to a global trade war as other countries consider retaliating.

BSE-100 index declined 0.13% or 30.42 points to close at 23,498.48 points.

DFM General Index shed 0.13% or 7.13 points to close at 5,327.74 points.

Commodities

Oil prices didn't change much on Tuesday after going up the day before because the U.S. put new sanctions on Iran. These sanctions are causing worries about the oil supply. Traders are also thinking about the effects of tariffs.

On Monday, the U.S. targeted more than 30 brokers, tanker operators, and shipping companies involved in transporting Iranian oil with new sanctions. President Donald Trump wants to stop Iran from exporting oil altogether.

Brent crude prices decreased by 0.17% to $74.65 per barrel.

Gold prices stayed close to their all-time high on Tuesday because people were worried about a trade war and instability due to U.S. President Donald Trump's tariff plans. This made many investors turn to gold as a safe option.

International gold prices decreased by 0.28% reaching $2,938.03 per ounce.

Currency

US dollar steadied against PKR in the inter-bank market. Pakistani currency closed at 279.69. In the open market USD was trading at PKR 281.