Pakistan stocks close positive for the ninth consecutive day

Pakistan's stock market closed on a positive note, marking its ninth consecutive day of gains and achieving new all-time closing highs.

Investors are closely monitoring the falling lending rates, which dropped after a decline in government bond yields, amid speculation of a significant rate cut in the State Bank of Pakistan's policy announcement expected this week.

However, the session experienced extreme volatility, with banking stocks trading in the red due to uncertainty surrounding the review of the Advance Deposit Ratio (ADR) tax. There were also rumors that government will impose tax on income from government securities

Despite this, major contributions to the day's gains came from the oil & gas exploration companies, cement, and technology & communication sectors.

The KSE-100 index gained 916.43 points or 0.84% to close at 109,970.38 points.

On Monday, Indian stock markets had a subdued opening as consumer stocks declined following a disappointing quarterly sales forecast from Godrej Consumer Products.

Despite an overall positive outlook for domestic equities, traders indicated that significant market moves are unlikely in the coming sessions as they await U.S. and domestic inflation data later this week.

Technically, the market's current behavior suggests a pause after a strong recovery from the previous session's lows. These consolidations during upward trends are often seen as opportunities to buy on dips.

BSE-100 index lost 71.35 points or 0.27% to close at 26,125.51 points.

DFM General index shed 20.10 points or 0.41% to close at 4,834.35 points.

Commodities

Oil prices increased on Monday as tensions in the Middle East escalated following the fall of the Syrian President's regime. Despite this, OPEC's significant production levels highlighted a weak global demand, which kept gains in oil prices limited.

Additionally, the number of oil and gas rigs in the U.S. rose sharply last week, reaching the highest count since September. This increase in rig deployment added to the complexities of the oil market dynamics.

Brent crude prices increased 1.01% to $71.84 per barrel.

Gold prices went up on Monday because China's central bank started buying gold again after stopping for six months. People also think the U.S. Federal Reserve might cut interest rates next week.

This year, central banks buying lots of gold, easier money policies, and global conflicts have pushed gold prices to record highs. Gold prices have increased by nearly 28% so far, making it the best year for gold since 2010.

International gold prices surged 0.89% reaching $2,656.54 per ounce. In Pakistan, gold prices declined by PKR 1,000 to PKR 274,700/tola.

Currency

US dollar eased against PKR in the inter-bank market, down 0.02%. Pakistani currency settled at 277.97 with a gain of 2 paisas. In the open market USD was trading at PKR 279.