Army chief's statement ignites rally at Pakistan's stock market

The Pakistan stock market reached its highest level ever on Thursday, with all-time highs both during the day and at closing.

This boost came after a meeting between the Army chief and the business community, where he assured support for economic stability. General Asim Munir expressed strong confidence in Pakistan's bright and stable future.

The market was full of liquidity and saw a shift in investment preferences. The fertilizer sector led the way, adding over 1,100 points as investors sought safe and defensive stocks.

Stocks performed well across the board as investors reacted positively to a drop in government bond yields and strong economic data, including a current account surplus, increased remittances, higher exports, and rising foreign direct investments (FDIs).

The major contributors to the day's gains were the fertilizer, oil & gas exploration, and pharmaceuticals sectors, which together added 1,414 points to the index.

KSE-100 index gained 1,781.94 points or 1.87% to close at 97,328.4 points.

On the other hand, Indian shares had a subdued session after billionaire Gautam Adani was indicted in New York for allegedly being involved in a multi-billion-dollar bribery and fraud scheme. Adani Group stocks were the hardest hit, dropping by over 23%.

Goldman Sachs has said that Indian stocks are likely to stay within a narrow range for the next three months. This prediction follows a recent decline after the worst earnings season in four years and ongoing high valuations.

BSE-100 index lost 310.21 points or 0.32% to close at 95,546.45 points.

The Dubai Financial Market (DFM) General Index lost 0.64% or 30.28 points to close at 4,730.39 points.

Commodities

The US Energy Information Administration (EIA) reported a 0.545 million barrel rise in US crude stocks for the week ending November 15, which pressured prices. Weak Chinese demand, with a 5.4% decline in October, also contributes to the downside, as China is the largest crude importer.

However, the escalating war between Russia and Ukraine, particularly concerns over potential supply disruptions, provides support to WTI prices. Despite weaker demand, supply risks are helping to keep prices stable.

Brent crude prices increased 1.57% to $73.95 per barrel.

Gold rise is driven by geopolitical risks from the escalating Russia-Ukraine war, which boosts demand for the safe-haven asset. Additionally, a slight dip in the US Dollar further supports gold prices.

Trump's proposed tariffs could drive inflation and limit the Federal Reserve's ability to cut rates, are putting a cap on gold's gains. Furthermore, the overall positive market sentiment, reflected in stronger equity markets, suggests caution before making aggressive bullish bets on gold.

International gold prices gained 0.83% reaching $2,669.39 per ounce. In Pakistan, gold prices increased by PKR 3,600 to PKR 273,500/tola.

Currency

The PKR strengthened against the US dollar, up 0.04% in the interbank market. Pakistani currency settled at 277.95, a gain of 9 paisas against the US dollar. In the open market, USD was trading at PKR 280.