Pakistan stocks close positive on oil, cement rally

Pakistan's stock market ended on a high note Friday on hopes of the resolution of PKR 1.25 trillion circular debt, with oil and cement companies leading the charge.

The positive performance was attributed to ongoing smooth negotiations with the International Monetary Fund (IMF) for the first review of a $7 billion bailout program.

An analyst at Ismail Iqbal Securities noted that the benchmark index's positive closing was driven by subdued international oil and coal prices, expected to lower the import bill and strengthen macroeconomic indicators.

"Meanwhile, news surrounding circular debt resolution kept potential beneficiary companies in the spotlight, while packaged milk producers gained momentum on expectations of a possible sales tax abolition on packaged milk," the analyst added.

An analyst at Al Habib Capital mentioned that the market responded positively to the government's deal with banks to settle PKR 1.25 trillion in circular debt, boosting investor confidence.

"Meanwhile, declining coal prices in the international market further fueled the market’s upward momentum," the analyst noted.

KSE-100 index gained 1.3% or 1,459.42 points to close at 113,713.18 points.

US dollar steadied against PKR in the inter-bank market. Pakistani currency lost 15 paisas to close at 279.97. In the open market USD was trading at PKR 281.3.

Indian markets closed Friday with modest gains, outperforming global and Asian markets, which declined due to U.S. economic data indicating slowing growth.

Concerns over a slowdown in the U.S. triggered a sell-off in tech stocks, while oil & gas and metal stocks resisted the trend amid falling crude oil prices and a declining U.S. Dollar Index.

BSE-100 index shed 0.03% or 6.05 points to close at 23,526.34 points.

DFM General Index shed 1.21% or 63.77 points to close at 5,209.98 points.

Commodities

On Friday, oil prices saw an uptick, although they were on track for their steepest weekly decline since October. This drop is due to uncertainties surrounding U.S. tariff policy, which is raising concerns about demand growth.

Meanwhile, major producers are preparing to increase output. The oil market, like many others, has been volatile due to fluctuating trade policies in the U.S., the world's largest oil consumer.

Brent crude prices increased by 1.35% to $70.40 per barrel.

Gold prices remained steady above the $2,900 per ounce mark on Friday, despite the precious metal being poised for a weekly gain.

Investor confidence has been dampened by concerns over the global economic impact of US President Donald Trump's trade policies.

This has led to a decline in equity markets while enhancing the allure of safe-haven assets like gold.

International gold prices decreased by 0.06% reaching $2,918.38 per ounce.