Pakistan stocks surge to all-time high amid strong market activity

Pakistan's stock market reached an all-time high on Wednesday driven by robust liquidity-fueled market activity.

Investors, anticipating a future environment with lower interest rates, continued to shift between asset classes, propelling the market to new heights.

The Asian Development Bank (ADB) added to the positive sentiment by approving $530 million in loans for Pakistan.

These funds are aimed at reducing energy losses and bolstering ongoing social development programs, providing a significant boost to the country's economic landscape.

Additionally, Pakistan is actively engaged in discussions with the International Monetary Fund (IMF) to secure funds for climate change initiatives.

Major contributors to the impressive performance included the oil & gas exploration companies, commercial banks, and oil & gas marketing companies.

The KSE-100 index gained 1,913.57 points or 1.76% to close at 110,810.22 points.

The Indian stock market finished with small gains after a mostly flat day. IT stocks surged in the last hour, ending the session on a high note.

Meanwhile, financial services and private banking sectors saw some selling. Analysts believe the market is stabilizing and expect it to gradually move upwards in the near future.

BSE-100 index gained 29.15 points or 0.11% to close at 26,174 points.

DFM General index gained 1.21 points or 0.03% to close at 4,795.32 points.

Commodities

On Wednesday, oil prices increased by 1% as people expected China, the top oil importer, to need more oil due to new plans to grow their economy. In November, China's oil imports went up by over 14% compared to the previous year, marking the first annual increase in seven months.

Meanwhile, in the U.S., the stockpiles of crude oil and fuel increased last week. Sources reported that crude stocks rose by 499,000 barrels, gasoline stocks increased by 2.85 million barrels, and distillate stocks went up by 2.45 million barrels.

Brent crude prices gained 1.18% to $73.04 per barrel.

On Wednesday, gold prices reached their highest level in nearly a month due to rising demand for safe investments amidst growing geopolitical tensions.

Additionally, the market sentiment has been bolstered by increased buying from global central banks.

International gold prices surged 0.12% reaching $2,697.28 per ounce. In Pakistan, gold prices increased by PKR 3,100 to PKR 280,500/tola.

Currency

US dollar strengthened against PKR in the inter-bank market, up 0.05%. Pakistani currency settled at 278.16 with a gain of 9 paisas. In the open market USD was trading at PKR 279.