Markets

Pakistan stocks surge as inflation eases; Dubai, India see profit-taking

Gold prices rise on safe-haven demand due to Middle East tensions and lower US bond yields

Pakistan stocks surge as inflation eases; Dubai, India see profit-taking
Pakistan Stock Exchange
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Pakistan stocks closed positive on Tuesday as the inflation fell below 7% raising hopes for a significant rate cut in the upcoming monetary policy in November.

The Consumer Price Index (CPI) for September recorded a year-on-year increase of 6.9%, down from 9.6% in August, marking the lowest inflation reading in 44 months.

Key drivers of the market rally included heavyweights such as HUBC, MARI, OGDC, BAHL, and PPL. Conversely, BAFL, HBL, POL, UBL, and MEBL pulled the index down by a combined 170 points.

The KSE-100 index gained 0.85% or 690.39 points to close at 81,804.59 points.

The Indian stock markets closed almost flat on Tuesday. Subdued global markets and foreign fund outflows weighed on investor sentiment.

Indus Bank, Asian Paints, Hindustan Unilever, Tata Motors, Tata Steel, Titan, Reliance Industries and NTPC were among the major laggards.

Tech Mahindra, Mahindra & Mahindra, Kotak Mahindra Bank, Infosys, HCL Technologies and State Bank of India were among the major gainers.

India’s BSE 100 Index gained 0.01% or 1.90 points to close at 27,340.5 points.

The Dubai Financial Market (DFM) General Index shed 0.58% or 26.21 points to close at 4,477.27 points.

Commodities

Crude oil prices fell on Tuesday amid concerns over demand and the potential for oversupply. These worries came despite escalating tensions in the Middle East.

The potential recovery of Libya’s oil production has added to supply concerns. Libya’s parliament recently approved the nomination of a new central bank governor, a move seen as a step towards resolving the country's oil output crisis.

Additionally, weak manufacturing data from China in September has cast doubt on global demand recovery.

Brent crude prices fell 0.59% to $71.28 per barrel.

Gold prices rose on Tuesday on safe-haven demand due to Middle East tensions and lower US bond yields, although the metal hovered below recent record highs after the Federal Reserve chief signalled smaller rate cuts in the future.

Gold dropped from historical highs due to profit-taking and some upside capped by Chinese stimulus measures directing investor flows to China's stock market

International gold prices gained 0.57% reaching $2,650.14 per ounce. In Pakistan, gold prices declined by PKR 600 to PKR 274,900/tola on Tuesday.

Currency

US dollar gained some strength against PKR, up 0.01% in the inter-bank market. Pakistani currency settled at 277.68, a gain of three paisas against the US dollar. In the open market USD was trading at PKR 280.

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