Pakistan stocks hit record high amid political turbulence and strong banking sector performance

Pakistan's stock market reached an all-time high, ending the day on a positive note despite significant fluctuations caused by political issues.

The banking sector received a boost from investor confidence in meeting the 50% ADR ratio target. During the mid-session, there was pressure due to PSX future contracts rollover, uncertainty about the outcome of protests by Pakistan's largest opposition party, and geopolitical tensions.

Stocks finished higher, especially due to the banking sector's strong earnings outlook and a ban on protests in the capital by the Islamabad High Court, which reduced political noise.

Major contributors to this gain were commercial banks, technology and communication, and oil and gas marketing sectors, which together added 728 points to the index.

KSE-100 index gained 281.55 points or 0.29% to close at 98,079.78 points.

The Pakistan stock market and Bitcoin are in a race to see which will hit the 100,000-mark first. Currently, Bitcoin is trading at $98,500.

Meanwhile, Indian stocks stayed steady throughout the trading session. However, there was a bit of profit-taking in the second half.

The markets saw a strong rally, with the bulls driving prices up. The BSE-100 index gained 354.44 points or 1.41% to close at 25,564.26 points.

The Dubai Financial Market (DFM) General Index gained 0.95% or 44.68 points to close at 4,768.32 points.

Commodities

On Monday, oil prices stabilized after rising by 6% last week.

Increased tensions between Western countries and major oil producers, Russia and Iran, are causing fears of supply disruptions, which is keeping prices steady.

As the new week begins, oil prices have slightly cooled down as traders wait for more updates on geopolitical events and the Federal Reserve's policy to determine the market direction.

Brent crude prices declined 0.17% to $75.04 per barrel.

International gold prices declined 1.08% reaching $2,687.07 per ounce. In Pakistan, gold prices decreased by PKR 4,300 to PKR 278,400/tola.

Currency

The PKR remained flat against the US dollar in the interbank market, settling at 277.75. In the open market, USD was trading at PKR 280.