Pakistan stocks rally amid declining commodity prices, IMF optimism

Pakistan stocks experienced a robust recovery on Thursday, driven by falling commodity prices in the international market and expectations of a positive outcome from the ongoing International Monetary Fund (IMF) review.

Ahsan Mehanti of Arif Habib Commodities attributed the market's recovery to Moody's recent upgrade of Pakistan's banking sector from a stable to a positive outlook, citing improved financial performance and macroeconomic conditions.

Investor optimism triggered a strong bullish surge, with the index reaching an impressive intraday high, according to an analyst at Topline Securities.

"The positive momentum was largely driven by growing investor confidence that the ongoing review with the International Monetary Fund (IMF) will conclude smoothly. This sentiment acted as a key catalyst, encouraging aggressive buying across major sectors.”

An analyst at Ismail Iqbal Securities noted that the benchmark index closed on a positive note as investors seized value buying opportunities amid declining international oil and coal prices. These price drops are expected to ease the import bill and strengthen macroeconomic indicators.

"Additionally, companies poised to benefit from the anticipated circular debt resolution stayed in focus as the market awaited finalization of the plan."

KSE-100 index gained 0.89% or 1,009.7 points to close at 115,094.24 points.

US dollar steadied against PKR in the inter-bank market. Pakistani currency lost 8 paisas to close at 280.05. In the open market USD was trading at PKR 281.6.

Indian Stocks

Indian stocks closed the shortened week negatively on Thursday. Despite starting positively due to milder-than-expected US inflation, global uncertainties outweighed optimism from soft inflation prints in India and the US.

Automobile and IT stocks were especially hit hard, dragging down the Nifty and Sensex.

BSE-100 index lost 0.34% or 80.65 points to close at 23,327.12 points.

DFM General Index gained 0.45% or 23.09 points to close at 5,180.21 points.

Commodities

Crude oil prices fell even though many expected high demand after the U.S. Energy Information Administration reported a larger than expected drop in oil inventories.

The decrease in U.S. gasoline stocks led to hopes for higher seasonal demand in spring, but worries about the global economic effects of tariff wars affected the market.

Brent crude prices decreased by 0.39% to $70.67 per barrel.

Gold prices hit a new record high on Thursday due to market uncertainties and global economic issues. One of the main reasons for this increase is the growing instability in global markets.

Concerns over US trade policies, especially those linked to President Donald Trump's tariffs, have led investors to buy gold as a safe investment.

International gold prices increased by 0.3% reaching $2,948.09 per ounce.