Pakistan stocks rally as decline in oil and coal prices boost market sentiment

Pakistan stocks rallied on Thursday buoyed by a decline in international oil and coal prices, along with optimism regarding the resolution of circular debt.

An analyst at Ismail Iqbal Securities said the benchmark index closed on a positive note, gradually gaining momentum as investors capitalized on value buying opportunities.

“The decline in international oil and coal prices fueled optimism, with expectations of a reduced import bill and improved macroeconomic indicators.”

Additionally, news surrounding circular debt resolution kept companies in the sector in the spotlight, further boosting market sentiment.

An analyst at Topline Securities said the equity market witnessed a robust rebound with the benchmark index surging to an intraday high of 1,617 points.

“This rally was primarily driven by a sharp decline in international oil prices, which plunged to multi-year lows, uplifting investor sentiment. Moreover, speculation surrounding high-level meeting on the clearance of the longstanding circular debt further fueled optimism across the board”.

KSE-100 index gained 1.3% or 1,459.42 points to close at 113,713.18 points.

US dollar eased against PKR in the inter-bank market. Pakistani currency gained 05 paisas to close at 279.82. In the open market USD was trading at PKR 281.3.

India's benchmark indexes are expected to open higher on Thursday, mirroring the positive trend in global equities. This follows U.S. President Donald Trump's temporary suspension of tariffs on automobile imports from Mexico and Canada.

The White House also mentioned that President Trump is open to considering other products for tariff exemptions, which took effect on Tuesday.

BSE-100 index gained 0.88% or 205.72 points to close at 23,532.39 points.

DFM General Index shed 0.63% or 33.45 points to close at 5,279.71 points.

Commodities

Oil prices stayed low this week after hitting the lowest point in nearly four years. This drop happened because the U.S. started charging tariffs on Mexican and Canadian imports, which led people to sell off their oil stocks.

Brent crude prices increased by 0.4% to $69.58 per barrel.

Gold prices went down a bit on Wednesday because people are uncertain about the new tariffs announced by US President Donald Trump this week. Everyone's now waiting for Friday's payrolls data to see what the Federal Reserve will do next about interest rates.

International gold prices decreased by 0.69% reaching $2,900.14 per ounce.