Markets

Pakistan stocks record gains ahead of year end

Investors reacted to lower-than-expected tax impositions and removal of ADR tax

Pakistan stocks record gains ahead of year end

KSE-100 index gained 3.51%

PSX

Pakistan stocks recorded third highest single-day surge on Monday, with gains driven across the board.

The rally was driven primarily by the banking sector, which gained significant traction as investors cheered lower than expected tax impositions and the removal of the ADR tax.

Investors reacted positively to Finance Minister's hints at upcoming economic reforms, including single-digit interest rates, government spending rationalization, and other fiscal measures.

Analysts attributed the significant upward movement to end-of-year activities, as institutions aimed to close their portfolios at higher rates.

KSE-100 index gained 3.51% or 3,907.82 points to close at 115,258.99 points.


Indian stock markets dropped on Monday due to foreign investors pulling out funds, weak global trends, and selling of top stocks.

Early trade saw selling in sectors like auto, IT, PSU banks, financial services, FMCG, media, energy, and metals.

BSE-100 index shed 0.4% or 101.67 points to close at 25,091.51 points.

DFM General Index gained 0.42% or 21.71 points to close at 5,151.35 points.

Commodities

Oil prices stayed steady, as concerns about Chinese demand were balanced by economic expectations.

The benchmark saw gains over the past week due to renewed optimism about China's oil demand prospects, despite bearish forecasts from CNPC and Sinopec predicting a peak in demand.

Despite China's perceived demand weakness, global crude oil consumption continues to rise.

Brent crude prices shed 0.05% to $74.13 per barrel.

Gold prices dipped on Monday in light trading as markets anticipated next week's U.S. economic data and the impact of President-elect Trump's upcoming return to office on the Federal Reserve's 2025 outlook.

Markets are bracing for major U.S. policy changes in 2025, including tariffs, deregulation, and tax changes, as Trump prepares to reenter the White House in January.

International gold prices decreased 0.38% reaching $2,612.11 per ounce.

Currency

US dollar remained unchanged against PKR in the inter-bank market. Pakistani currency settled at 278.46. In the open market USD was trading at PKR 279.

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