Pakistan stocks surge as global markets rebound

Pakistan’s stock market closed on a strong note Tuesday, buoyed by a global recovery in equities and optimism following a pause in U.S. reciprocal tariffs.

The benchmark index surged as much as 3,331 points during intraday trading, with major contributions from key movers including Hub Power, Oil & Gas Development, Lucky Cement, United Bank, and Pakistan Petroleum, analysts said.

Pakistan Petroleum saw a sharp rally after signing a joint venture agreement in Balochistan and commencing gas production from the Shah Bandar block.

“The upward trajectory was fueled by a strong rebound in U.S. and other international equity markets,” an analyst at Topline Securities said.

The market rebound came as global investors responded positively to the U.S. government’s decision to temporarily suspend tariffs for 90 days, easing trade tensions.

“Investors took positions in anticipation of potential improvement in the overall economic landscape,” said an analyst at Ismail Iqbal Securities.

Oil and gas exploration companies, cement producers, and technology and communication firms played a pivotal role in Tuesday’s gains, collectively adding 884 points to the index.

The rally aligns with broader trends in international markets, signaling renewed confidence among investors.

KSE-100 index gained 1.78% or 2,036.05 points to close at 116,189.21 points.

Currency

US dollar eased against PKR in the inter-bank market. Pakistani currency gained 22 paisas to close at 280.56. In the open market USD was trading at PKR 282.

DFM General Index gained 1.66% or 81.19 points to close at 4,974.07 points.

Crude Oil

Oil prices dropped on Thursday after U.S. President Donald Trump increased tensions with China by raising tariffs to 125%, up from 104%, effective immediately.

While he paused tariffs for other countries for 90 days, the higher tariffs on China created uncertainty in the markets, which could slow down global economic growth. In response, China imposed an 84% tariff on U.S. goods starting Thursday.

Brent crude prices increased by 2.23% to $64.02 per barrel.

Gold Prices

Gold prices have surged past the $3100/oz mark, with bullish momentum dominating the market. Escalating US-China trade tensions continue to fuel strong safe-haven demand.

Rate cut expectations remain highly volatile as tariff developments influence sentiment. Markets have been adjusting their rate forecasts at an extraordinary pace—just yesterday, the probability of a 25 bps cut in May stood at 44%, only to plunge to 20% following President Trump's tariff pause announcement.

International gold prices increased 1.35% to close at $ 3,124.16 per ounce. In the local market, gold prices increased by PKR 7,800 to 328,800 per tola.