Pakistan stocks post largest single-day surge to close at an all-time high

Pakistan stocks posted largest single day surge and closed at an all-time high, on Wednesday as political protests in the capital concluded, bringing a sense of stability back to the market.

An analyst said market was worried that if the protests dragged longer, political uncertainty would multiply. This surge followed the previous day's largest single-day decline of 3,505 points, highlighting the market's resilience and investor confidence.

Market capitalization soared by approximately PKR 525 billion, driven by fresh inflows.

The KSE-100 index surged 4.96% or 4,695 points to close at 99,269 points.

Indian stock indices closed higher on Wednesday, boosted by a recovery in Adani group stocks.

Market also gained from positive news in the Middle East, where Israel and Hezbollah agreed to a ceasefire.

BSE-100 index gained 104.36 points or 0.41% to close at 25,655.5 points.

The Dubai Financial Market (DFM) General Index shed 0.39% or 18.9 points to close at 4,809.63 points.

Commodities

Oil prices remained stable on Wednesday as the market assessed a ceasefire agreement between Israel and Hezbollah and awaited Sunday's OPEC+ meeting, which might delay an increase in oil production.

Oil benchmarks fell on Tuesday after Israel and Hezbollah agreed to a ceasefire. The ceasefire, brokered by the U.S. and France, took effect on Wednesday.

Brent crude prices surged 0.12% to $72.9 per barrel.

Gold prices bounced back on Wednesday after dropping to a one-week low the day before. This rise happened as the dollar weakened and traders looked forward to important inflation data for clues on possible Federal Reserve rate cuts.

There's also renewed speculation about a Fed rate cut in December, which helped boost gold prices.

International gold prices surged 0.94% reaching $2,645.96 per ounce. In Pakistan, gold prices increased by PKR 1,600 to PKR 275,900/tola.

Currency

US dollar strengthened against PKR in the inter-bank market, up 0.06%. Pakistani currency settled at 277.96 with a loss of 12 paisas. In the open market USD was trading at PKR 280.