Pakistan stocks hit record high amid investor optimism

Pakistan’s stock market surged to record highs on Thursday, posting the highest trading value in nearly two months, led by aggressive mutual funds buying.

The benchmark index reached all-time highs, both intraday and at close, according to analysts.

Despite a late-session dip due to profit-taking, the market’s upward momentum was driven by expectations of progress toward the IMF’s Staff Level Agreement and optimism about inflation for the month, which is projected to be near or below 1%.

"Mari Energies stole the spotlight, recording a staggering PKR 7.17 billion in traded value," said an analyst at Topline Securities. "Investors speculated on a potential announcement at its emergent board meeting scheduled for Friday."

An analyst at Ismail Iqbal Securities added that key sectors, including oil and gas exploration, technology and communication, and fertilizers, played a significant role in the rally, contributing a combined 780 points to the index.

KSE-100 index gained 0.67% or 795.74 points to close at 118,769.77 points.

Currency

US dollar steadied against PKR in the inter-bank market. Pakistani currency lost 2 paisas to close at 280.23. In the open market USD was trading at PKR 282.

Indian Stocks

Indian stock markets continued their winning streak for the fourth day on Thursday, led by gains in IT stocks. Despite weak global trends, the markets showed resilience in March, recovering from February's losses and outperforming many global peers.

Improved domestic factors and easing valuation concerns, especially in large-cap stocks, boosted investor confidence, leading to a strong recovery. After five months of bearish dominance, the market has stabilized, allowing bulls to push key indices above crucial levels.

BSE-100 index gained 1.1% or 264.87 points to close at 24,255.88 points.

DFM General Index gained 0.21% or 10.7 points to close at 5,127.81 points.

Crude Oil

Oil prices remained steady on Thursday, supported by strong U.S. demand after a larger-than-expected drop in fuel inventories and a weaker dollar.

Distillate inventories, including diesel and heating oil, fell by 2.8 million barrels, far exceeding the forecasted 300,000-barrel drop.

Global oil demand averaged 101.8 million barrels per day, up 1.5 million bpd from last year. The weaker dollar, declining since late February, also boosted oil prices.

Brent crude prices decreased by 0.07% to $70.73 per barrel.

Gold Prices

Gold dipped slightly on Thursday after momentarily reaching a new all-time high, as traders took profits. Despite this pullback, the overall upward trend remains strong, reflecting robust bullish momentum while also highlighting the market's susceptibility to short-term corrections.

The Federal Reserve maintained interest rates at 4.25%-4.50% but reaffirmed its expectation of two rate cuts later in the year. Lower rates tend to favor gold, as they diminish the opportunity cost of holding assets that do not yield returns.

International gold prices declined 0.19% to close at $ 3,027.73 per ounce. In the local market, gold prices stand at PKR 320,800 per tola.