Pakistan stocks surge to new record in first trading session of 2025

The Pakistan stock market opened the new year on a high note, setting fresh all-time highs in its first trading session.

The surge comes as December inflation came at 4.07%, below market expectation, increasing investor optimism over a potential cut in the State Bank of Pakistan's (SBP) key policy rate.

Market analysts attribute the robust performance to several factors, including slower inflation, strong economic indicators, and the stability of the Pakistani rupee following disbursements under the International Monetary Fund (IMF) program.

Adding to the positive sentiment, the Pakistani government unveiled a new five-year economic plan on December 31, targeting a growth rate of over 6% and setting an ambitious goal of $60 billion in exports.

The benchmark KSE-100 index gained 1.63% or 1,881.18 points to close at 117,008.08 points.

Separately, Indian stocks rose on Wednesday, boosted by buying in various sectors, including auto, IT, PSU banks, financial services, pharma, FMCG, media, energy, and private banks.

Improved core sector data and the potential for increased government capex spending further supported sectors like capital goods, industrials, auto, and power.

Meanwhile, the BSE-100 index gained 0.42% or 105.69 points to close at 25,167.44 points.

Commodities

Oil prices saw a modest rise on Tuesday, buoyed by China's manufacturing sector continuing its expansion for the third consecutive month in December, albeit at a slower pace. This growth is attributed to China's significant 3 trillion yuan ($411 billion) stimulus package for 2025, aimed at bolstering industrial production and driving fuel demand.

Despite this positive trend, concerns remain. Both OPEC and the International Energy Agency (IEA) have revised their oil demand forecasts for 2025 downward, pointing to a sluggish economic recovery and declining demand from major consumers, including China.

Brent crude prices gained 0.88% to $74.64 per barrel.