Pakistan stocks rally on anticipated $7bn IMF loan approval

Pakistan stocks closed positive buoyed by investor confidence ahead of the anticipated approval of a $7 billion IMF loan.

The surge was driven by optimism about the country’s economic outlook and improved market liquidity. Analysts attributed the positive trend to favorable global market conditions and strong local investor interest, particularly in key sectors such as banking, energy, and cement.

Major players like MCB, OGDC, NBP, UBL, and BAHL saw significant gains, reflecting a broad wave of buying.

The KSE-100 index gained 0.94% or 764.28 points to close at 82,247.92 points.

Indian stocks closed positive on Wednesday. The US Federal Reserve's monetary policy committee has notably lent support to Indian stocks by slashing interest rates by a significant 50 basis points.

Foreign portfolio investors have also bolstered stock indices through continued buying.

India’s BSE 100 Index gained 0.05% or 14.08 points to close at 27,477.04 points.

The Dubai Financial Market (DFM) General Index gained 0.61% or 27.2 points to close at 4,488.69 points.

Commodities

Crude oil edged lower on Wednesday, pressured by strong technical resistance levels and market uncertainty surrounding China’s latest economic stimulus measures.

The lack of immediate traction in China’s oil demand, combined with weaker U.S. consumer confidence data, is also keeping the market cautious.

U.S. consumer confidence hit a three-year low in September, reflecting concerns about job availability, which could weigh on domestic energy consumption.

Brent crude prices slipped 1.69% to $73.90 per barrel.

Gold prices in the international market on Wednesday hit a fresh all-time high amid the Israel-Lebanon conflict, a weaker dollar and a decline in US bond yields.

Weaker than expected US CB consumer confidence numbers has increased the bets of another 50 bps interest rate cut in November.

International gold prices increased eased 0.01% reaching $2,658.14 per ounce. In Pakistan, gold prices increased by PKR 2,500 to PKR 275,500/tola on Wednesday.

Currency

US dollar remained almost flat against PKR in the inter-bank market. Pakistani currency settled at 277.84, a gain of 02 paisas against the US dollar. In the open market USD was trading at PKR 280.