Pakistan stocks closed positive amid corporate earnings

Pakistan stocks closed on a positive note Tuesday, recovering some losses from previous sessions.

Despite some volatility during the trading session, investor sentiment remained upbeat as the earnings season delivered a mix of results and surprise dividend announcements.

Speculation grew among investors regarding the outcome of ongoing discussions between the World Bank and the International Monetary Fund after the World Bank approved a $40 billion investment under the country partnership framework.

Key catalysts for the bullish close at the Pakistan Stock Exchange (PSX) included surging global crude oil prices, a robust 15.86% year-on-year increase in textile exports in January 2025, and upbeat earnings in the fertilizer, cement, and banking sectors.

Expectations of further policy easing by the State Bank of Pakistan amid thin inflation also contributed to the positive market sentiment.

The PSX saw a surge in activity as investors reacted to the favorable economic indicators and anticipated further positive developments in the near future.

KSE-100 index gained 1.2% or 1,344.95 points to close at 113,088.48 points.

Indian stocks didn't change much for the second day in a row on Tuesday. Earlier, they had dropped sharply due to high stock prices, poor earnings, and foreign investors pulling out money.

Analysts say that high stock prices and nervousness among some investors about the recent drop and poor earnings could make small and mid-sized company stocks fall even more.

BSE-100 index shed 0.03% or 6.8 points to close at 23,846.08 points.

DFM General Index shed 0.16% or 8.35 points to close at 5,374.5 points.

Commodities

Oil futures rose Tuesday after Ukraine's drone attack on a pipeline from Kazakhstan to southern Russia reduced crude flows.

However, the market's main focus is on whether OPEC+ and Russia will increase output in April as planned, which could cap price gains. If the production boost is delayed, it may support prices.

Brent crude prices increased by 0.08% to $75.28 per barrel.

Gold prices increased for the second consecutive session on Tuesday. Despite this rise, they remained below the recent all-time highs due to persistent uncertainty surrounding U.S. President Donald Trump's tariff plans, which fueled economic growth concerns and drove investors toward the safe haven of bullion.

International gold prices increased by 0.65% reaching $2,917.36 per ounce.

Currency

US dollar steadied against PKR in the inter-bank market. Pakistani currency closed at 279.36. In the open market USD was trading at PKR 281.