Pakistan stocks hit record high amid earnings season rally

Pakistan stocks soared to a new all-time high during the earnings season rally, driven by investor speculation over an anticipated major rate cut by the State Bank of Pakistan (SBP) next week.

Several factors contributed to the bullish sentiment at PSX. Global equities showed strength as fears of unrest in the Middle East eased.

Additionally, the Asian Development Bank (ADB) approved $2.75 billion in budget support for Pakistan over the next four years. The government’s ongoing deliberations on the privatization of state-owned enterprises (SOEs) also played a significant role in boosting investor confidence.

It may be mentioned here Pakistan stock exchange posted an increase of 4,744 points or 5.6% last week

KSE-100 index gained 201.55 points or 0.22% to close at 90,195.51 points.

Indian stock markets went up on Monday as investors opted for value buying.

However, there’s uncertainty because of the upcoming US elections. Recently, foreign investors pulled out money, and Indian companies reported lower earnings for the July-September period, which added pressure on the markets.

Despite a selloff last week, the markets bounced back on Monday due to good results from banks and lower oil prices, thanks to expected easing of tensions in the Middle East.

India’s BSE 100 Index gained 0.65% or 165.1 points to close at 25,646.06 points.

The Dubai Financial Market (DFM) General Index gained 1.29% or 57.73 points to close at 4,536.92 points.

Commodities

Crude oil prices started the week on a downturn after Israel's retaliatory strike against Iran, which according to Iranian sources, did not inflict significant damage.

This reduced the risk of further violence. The limited nature of the strikes, particularly avoiding oil infrastructure, raised hopes for de-escalation, resulting in a slight drop in the risk premium for oil prices.

Brent crude prices declined 5.73% to $71.69 per barrel.

Gold prices fell on Monday because the dollar and US Treasury yields went up, making gold less attractive.

Additionally, reduced worries about a larger conflict in the Middle East lowered the demand for gold as a safe investment.

International gold prices decreased 0.66% reaching $2,731.44 per ounce. In Pakistan, gold prices decreased by PKR 900 to PKR 283,400/tola on Monday.

Currency

US dollar gained ground against PKR, up 0.01% in the inter-bank market. Pakistani currency settled at 277.68, a loss of 4 paisas against the US dollar. In the open market USD was trading at PKR 280.