Pakistan stocks rise to record high amid anticipation of below 5% inflation

Pakistan Stocks ended on a positive note, hitting an all time high both intraday and at the close.

Analysts said the rally was largely driven by a liquidity fueled market and a shift in asset preferences, supported by November 2024 inflation estimates of below 5% and lower international oil prices, which kept investors optimistic.

Systems Limited (up 8.59%) in the technology sector saw significant investor interest after OneZapp, a subsidiary of Systems Ltd., got approval from the State Bank of Pakistan to start operating as an Electronic Money Institute.

The pharmaceutical sector also performed well, with AGP, BFBIO, FEROZ, and ABOT all closing higher than their previous sessions, continuing their recent upward trend.

KSE-100 index gained 860.99 points or 0.91% to close at 95,856.66 points.

BSE-100 index gained 0.31% or 77.17 points to close at 24,852.21 points.

The Dubai Financial Market (DFM) General Index gained 0.4% or 19.06 points to close at 4,731.72 points.

Commodities

Russia's recent largescale airstrike on Ukraine’s power infrastructure and President Biden's approval for Ukraine to use long-range US missiles have heightened geopolitical tensions. Russia has warned of retaliation, increasing the risk of NATO confrontation.

Crude prices received support after Norway's Equinor halted production at its Johan Sverdrup Oilfield due to a power outage, with no clear timeline for resumption.

However, oil prices faced downward pressure from Fed Chair Jerome Powell’s comments on the economy’s resilience, and concerns over weakening demand from China, the world's top oil importer.

Brent crude prices decreased 0.56% to $72.88 per barrel.

Gold prices are rising for the second consecutive day on Tuesday, moving further away from last week's two-month low.

The rally pushes gold to a one-week high around $2,628 during the Asian session, supported by several factors.

Softening US Treasury yields have weakened the US Dollar, which is holding below its year-to-date peak, while geopolitical risks are driving haven demand for gold.

International gold prices surged 0.96% reaching $2,634.12 per ounce. In Pakistan, gold prices increased by PKR 3,600 to PKR 273,500/tola.

Currency

US dollar strengthened against PKR, up 0.04% in the inter-bank market. Pakistani currency settled at 277.95, a loss of 10 paisas against the US dollar. In the open market USD was trading at PKR 280.