Pakistan Stocks surge on investor speculation amid earnings season

Pakistan stocks closed higher on Friday, buoyed by investor speculations during the earnings season.

Surging global crude oil prices and strong earnings reports from the banking and cement sectors positively influenced market sentiments.

UBL surged 4.74%, Lucky Cement rose 6.02%, and NBP gained 10.0%, making them the top contributors to the index gains. In contrast, Mari Petroleum fell 1.59%, Fauji Fertilizer decreased by 0.23%, and Mehmood Textile dropped 4.19%, acting as the biggest drags on the index.

The IMF mission is expected to arrive in Pakistan by late February or early March for the first review of the $7 billion Extended Fund Facility (EFF).

Analysts suggest that the market has likely reached its low this week and may now move through resistance levels in the coming week.

KSE-100 index gained 0.93% or 1,049.33 points to close at 114,255.73 points.

Indian stocks surged on Friday, driven by anticipation of the Economic Survey 2025 report set to be presented in Parliament. Finance Minister Nirmala Sitharaman will introduce the Economic Survey in the Lok Sabha ahead of the Union Budget 2025-2026 presentation on Saturday, 1 February 2025.

Market analysts pointed out the uncertainty linked to the Trump administration's potential tariff announcement on February 1, which could affect global trade and inflation. A delay in tariffs could bolster risk-on sentiment.

BSE-100 index gained 0.34% or 81.41 points to close at 24,339.30 points.

DFM General Index gained 0.49% or 25.4 points to close at 5,180.37 points.

Commodities

Demand for oil from China is low, and there's too much supply, so oil prices stay under $80 a barrel. However, stricter U.S. sanctions on Russian oil and global political tensions might push prices up.

On Friday, oil prices dropped slightly and were expected to decline for the week, as markets anticipated whether U.S. President Donald Trump would impose tariffs on Mexico and Canada this weekend.

Brent crude prices lost 0.12% to $76.78 per barrel.

Gold prices hit a record high on Friday, briefly reaching $2,800. People started buying gold after U.S. President Donald Trump repeated his threats to impose tariffs.

On Thursday, Trump said the U.S. would put a 25% tax on imports from Mexico and Canada, and he was still thinking about new tariffs on Chinese goods. Gold is often chosen during times of economic and political trouble.

International gold prices increased 0.37% reaching $2,807.01 per ounce.

Currency

US dollar eased against PKR in the inter-bank market. Pakistani currency gained 2 paisas to 278.95. In the open market USD was trading at PKR 281.