Pakistan stocks close positive amid improving economic indicators

Pakistan stocks ended on a high note as investors anticipated a ratings upgrade following the Finance Minister’s assurance of macroeconomic stability.

The MSCI is expected to revise Pakistan’s standard index weight to 4.4% from November 26, due to strong performance and liquidity.

Investors were motivated by the prospect of lower interest rates, leading to value buying. The positive trend was further supported by a bull run in global equities.

KSE-100 index gained 499.04 points or 0.54% to close at 92,520.48 points.

Indian shares dropped on Thursday, unlike other Asian markets. This was mainly because Hindalco Industries’ U.S. unit reported lower profits, causing metal stocks to fall.

While Indian markets went down, other Asian markets went up, following a strong performance on Wall Street to record highs overnight as markets celebrated, in part, the clarity of U.S. election outcome after Donald Trump's win.

India’s BSE 100 Index lost 1.09% or 282.66 points to close at 25,585.45 points.

The Dubai Financial Market (DFM) General Index gained 0.6% or 27.89 points to close at 4,644.17 points.

Commodities

Crude oil prices dropped on Thursday after a bumpy trading day as investors assessed Donald Trump's return to White House.

Investors are worried about higher tariffs on Chinese goods and a possible trade war, which could affect demand in China, the world’s second-largest oil consumer.

Traders think that cutting taxes and raising tariffs will increase inflation and slowdown interest rate cuts.

Higher interest rates for a longer time mean a stronger dollar, making commodities like oil and gold more expensive for people using other currencies.

Brent crude prices declined 0.68% to $74.41 per barrel.

Gold prices stayed little changed as everyone waits to see what the Federal Reserve will do about interest rates. Most other commodities, including gold, are losing value because the US dollar is strong following Donald Trump’s victory in the US Presidential race.

International gold prices declined 0.07% reaching $2,665.68 per ounce. In Pakistan, gold prices dropped by PKR 5,400 to PKR 276,800/tola on Thursday.

Currency

US dollar strengthened against PKR, up 0.02% in the inter-bank market. Pakistani currency settled at 277.94, a loss of 5 paisas against the US dollar. In the open market USD was trading at PKR 280.5.