Pakistan stocks close on a positive note following volatile session

After a rocky start, Pakistan's stock market finished strong on Tuesday as investors capitalized on value buying opportunities, driving the index higher in the latter half of the trading session.

Investor sentiment saw a marked improvement, bolstered by positive economic data. Notably, annual inflation continued its downward trend, reaching a nearly decade-low of 1.5% in February.

The market's recovery was propelled by significant buying interest in key sectors. Commercial banks, oil & gas exploration companies, and cement sectors emerged as major contributors, collectively adding 408 points to the index.

Analysts attribute the market's resilience to improved investor confidence amid encouraging economic indicators, and expect continued positive momentum in the coming sessions.

KSE-100 index gained 0.68% or 756.91 points to close at 112,743.80 points.

US dollar steadied against PKR in the inter-bank market. Pakistani currency lost 9 paisas to close at 279.76. In the open market USD was trading at PKR 281.3.

On Tuesday, Indian stocks closed negative. The market downturn is driven by foreign investor selling, global economic concerns, and corrections in small-cap and mid-cap stocks.

High market valuations and attractive US bond yields, especially after Trump's policy shifts, have led to sustained selling by foreign institutional investors (FIIs).

BSE-100 index shed 0.06% or 14.33 points to close at 23,007.64 points.

DFM General Index gained 0.32% or 16.82 points to close at 5,344.42 points.

Commodities

Oil prices fell today, March 4, because the United States imposed tariffs on its trading partners, including China. This decision caused a trade war, with China responding by placing tariffs on some US goods, and Canada doing the same on $107 billion worth of US imports.

Prices also dropped in the previous session after OPEC+ announced it would start increasing production in April. However, this increase might be paused or reversed depending on market conditions.

Brent crude prices decreased by 1.33% to $70.67 per barrel.

Gold prices increased because of concerns about trade tariffs and geopolitical instability. Investors are looking for safe-haven assets as US President Donald Trump's tariffs on Mexico, Canada, and China take effect.

The risk of a global trade war adds to market uncertainty, increasing demand for gold. Retaliatory tariffs from Canada and China also fuel fears of economic disruption, leading investors to hedge against potential downturns with gold.

International gold prices increased by 0.78% reaching $2,914.19 per ounce.