Pakistan stocks post gain, as SCO summit kicks-off

Pakistan stocks gained on Tuesday, despite a pullback in the fertilizer and exploration and production (E&P) sectors.

Investor enthusiasm remained strong due to the ongoing Shanghai Cooperation Organisation (SCO) summit, with many expecting new investment opportunities.

Analysts suggest that the market may see a correction due to profit-taking and recommend booking profits at current levels and waiting for a dip to capitalize on future buying opportunities.

The KSE-100 index gained 0.68% or 578.96 points to close at 85,840.34 points.

Indian stocks closed lower on Tuesday, as concerns over global economic uncertainty and the ongoing West Asia conflict dampened investor sentiment.

The market remained volatile, with key indices ending in the red due to fears of economic instability and the sharp drop in crude oil prices, indicating a slowdown in demand.

Sectoral performance was mixed, with realty and FMCG finishing in the green, while metals and auto sectors were among the top losers.

India’s BSE 100 Index lost 0.09% or 22.62 points to close at 26,491.42 points.

The Dubai Financial Market (DFM) General Index gained 0.05% or 2.02 points to close at 4,457.04 points.

Commodities

Crude oil prices dropped Tuesday on reports that Israel may not target Iranian oil facilities in its retaliatory strike.

The focus has shifted back to demand fundamentals, with OPEC cutting its global oil demand growth forecast for 2024 and 2025 for the third consecutive month, citing poor demand from certain regions.

Brent crude prices fell 4.4% to $74.05 per barrel.

Gold prices remained steady on Tuesday as investors awaited new information on the Federal Reserve's approach to U.S. interest rate reductions for guidance on bullion prices.

Analysts suggest that the upcoming U.S. elections could boost gold demand as a hedge against uncertainty.

Additionally, anticipated Fed rate cuts, likely in 25-basis-point increments, may drive gold prices to record highs.

International gold prices increased 0.12% reaching $2,652.59 per ounce. In Pakistan, gold prices decreased by PKR 700 to PKR 275,000/tola on Tuesday.

Currency

US dollar gained some ground against PKR, up 0.02% in the inter-bank market. Pakistani currency settled at 277.74, a loss of 8 paisas against the US dollar. In the open market USD was trading at PKR 280.