Pakistan stocks hit record high amid volatility and profit taking

Pakistan's stock market ended on a positive note Thursday, achieving a modest gain and setting an all-time high at both intraday and close.

However, the latter half of the session saw a touch of volatility, driven by evolving political outlooks and cautious profit-taking by investors.

Stocks closed higher amid upbeat data showing a record fall in CPI inflation to 4.1% in December, coupled with Prime Minister's affirmation of macroeconomic stability.

Fertilizer, automobile assembler, and commercial banks sectors were the major contributors in today's session, cumulatively adding 693 points to the index.

KSE-100 index gained 0.10% or 111.57 points to close at 117,119.66 points.

Indian indices rose on Thursday, driven by gains in auto and IT stocks. Auto companies saw growth in their corporate earnings prospects after a rise in December sales.

IT firms experienced strong buying due to an optimistic forecast for higher fiscal year 2025 revenue growth, thanks to an improving outlook in the US.

BSE-100 index gained 1.77% or 445.59 points to close at 25,613.03 points.

DFM General Index shed -0.10% or 5.34 points to close at 5,153.33 points.

Commodities

Oil prices rose on Thursday driven by optimistic market sentiment for stronger economic and oil demand growth.

Throughout the fourth quarter, oil prices were stable due to concerns about demand in China and other major economies, as well as expectations of oversupply.

In 2024, oil prices dropped for the second year in a row, decreasing by about 3% compared to the end of 2023.

Brent crude prices gained 1.5% to $75.76 per barrel.

Gold prices rise for the third consecutive session, driven by US monetary easing, geopolitical tensions, and record central bank purchases.

The Fed is expected to adopt a more cautious approach to rate cuts in 2025, signaling a hawkish shift due to uncertainties surrounding the incoming Trump administration's economic plans.

International gold prices increased 0.66% reaching $2,642.15 per ounce.

Currency

US dollar steadied against PKR in the inter-bank market. Pakistani currency settled at 278.64 with a loss of 9 paisas. In the open market USD was trading at PKR 279.