Pakistan stocks recover after a two-day sell-off

Pakistan stocks rebounded on Friday, closing on a bullish note following a two-day sell-off.

The market recovery came as the year-end approached, buoyed by a positive earnings outlook.

Contributing to the upward momentum, a strong rupee, reports of surging exports, rising global crude oil prices, and declining government bond yields amid low inflation were key factors.

These elements collectively played a significant role in driving the Pakistan Stock Exchange (PSX) to a bullish close.

Market analysts highlighted the optimism surrounding earnings as a major driver, signaling potential growth and stability in the coming months. The PSX's performance on Friday provided a positive end to a volatile trading week.

KSE-100 index gained 0.84% or 927.85 points to close at 111,351.17 points.

Indian stocks went up on Friday, thanks to auto companies, after they became cheaper last week.

However, the U.S. Federal Reserve's fewer expected rate cuts for 2025 made emerging markets less attractive.

Experts think the market will stay calm until the quarterly earnings reports begin in the second week of January.

BSE-100 index gained 0.07% or 18.19 points to close at 25,193.18 points.

DFM General Index gained 0.35% or 17.66 points to close at 5,129.64 points.

Commodities

Oil prices went up on Friday and are expected to continue rising for the week. This increase is due to hopes of an economic boost in China, the world's largest oil importer, and predictions that US oil inventories are going down.

Analysts surveyed by Reuters thought that US crude oil stocks would drop by about 1.9 million barrels last week, while the American Petroleum Institute reported a larger decline of 3.2 million barrels.

Brent crude prices gained 0.67% to $73.75 per barrel.

Gold prices remained steady on Friday, poised for a weekly increase as investors turned to safe investments due to political instability in the Middle East.

This interest in gold outweighed the impact of a stronger dollar. With ongoing conflicts between Russia-Ukraine and the situation in Gaza, investors are keeping a close eye on gold in case the conflicts escalate.

International gold prices increased 0.3% reaching $2,625.78 per ounce.

Currency

US dollar steadied against PKR in the inter-bank market, up 0.02%. Pakistani currency settled at 278.46 with a loss of 09 paisas. In the open market USD was trading at PKR 279.