Pakistan stocks closed positive due to enhanced investor confidence

Pakistan stocks surged on Monday, fueled by enhanced investor confidence amid growing political stability that eased existing uncertainties.

Anticipation of a potential rate cut in the upcoming monetary policy meeting, set for January 27, 2025, further amplified positive market sentiment, spreading optimism across key sectors.

The index experienced an intraday rally of 1,000 points, though profit-taking in the latter half slightly trimmed earlier gains. Major contributors to the session's performance included the fertilizer, cement, and commercial banking sectors, which collectively added 295 points to the index.

KSE-100 index gained 0.5% or 572.73 points to close at 115,844.81 points.

Indian markets closed higher on Monday, driven by strong performance in banking and metal stocks. Positive global signals also helped boost the market during the financial results season.

Most sectors saw gains, except for auto and FMCG, with bank, media, metal, capital goods, PSU, telecom, power, and PSU bank indices up by 1-2%.

BSE-100 index gained 0.53% or 130.19 points to close at 24,594.55 points.

DFM General Index lost 0.18% or 9.55 points to close at 5,202.18 points.

Commodities

Oil prices dropped on Monday because people expect US President-elect Donald Trump to ease restrictions on Russia's energy sector in exchange for a deal to end the Ukraine war. This outweighed concerns about supply disruptions from stricter sanctions.

Trump, who will be inaugurated later on Monday, is expected to announce several new policies, including lifting a ban on US liquefied natural gas export licenses, as part of a broader plan to boost the economy.

Brent crude prices declined 0.52% to $80.37 per barrel.

Gold prices didn't change much on Monday because traders were waiting for President-elect Donald Trump's inauguration speech. They expected to get some hints about his policies during the speech later that day.

Gold prices might become unstable as Trump starts his second term as the US president.

International gold prices increased 0.31% reaching $2,711.57 per ounce.

Currency

US dollar eased against PKR in the inter-bank market. Pakistani currency gained 6 paisas to 278.65. In the open market USD was trading at PKR 281.