Pakistan stocks surge to record highs amid strong corporate results

Pakistan stocks surged to a new record high on Friday as bullish momentum and excitement over earnings season drove the gains.

Fertilizers, commercial banks, and cement stocks were major contributors. The anticipated interest rate cut next month also fueled the rally.

Positive news on SOE privatization, PSDP rationalization, a $1bn IMF climate fund request, and rising FX reserves boosted investor confidence.

KSE-100 index gained of 1,047.98 points or 1.18% to close at 89,993.96 points.

The Indian stock market saw a big drop on Friday. This was mainly due to poor second-quarter earnings from major companies like IndusInd Bank and NTPC, along with foreign investors pulling out of the market.

Major stocks such as IndusInd Bank, M&M, L&T, ICICI Bank, Reliance Industries, HDFC Bank, SBI, and NTPC led to the decline in the Sensex.

India’s BSE 100 Index lost 1.01% or 260.79 points to close at 25,480.96 points.

The Dubai Financial Market (DFM) General Index gained 0.34% or 15.19 points to close at 4,479.19 points.

Commodities

Oil rose on Friday. Concerns about Middle East conflict support crude prices, while demand worries limit gains.

Israel's potential response to Iran's missile attack raises concerns about disruptions to Iranian oil infrastructure. However, reports suggest Israel may target military sites instead.

Discussions about a ceasefire in Gaza are ongoing. The US Dollar Index's decline boosts demand for dollar-priced oil, but a larger-than-expected increase in US stockpiles pressures prices.

Brent crude prices increased 0.95% to $75.09 per barrel.

Gold prices fell on Friday, giving back some of the previous day's gains. With the US presidential election less than two weeks away, political uncertainty and Middle East tensions could boost demand for gold.

However, this is balanced by increased buying of the US Dollar due to expectations of a stable Federal Reserve policy. Traders no longer expect a significant rate cut in November, as recent US economic data shows stability, supporting the dollar and putting pressure on gold prices.

International gold prices decreased 0.32% reaching $2,725.6 per ounce. In Pakistan, gold prices decreased by PKR 800 to PKR 282,300/tola on Friday.

Currency

US dollar gained ground against PKR, up 0.03% in the inter-bank market. Pakistani currency settled at 277.84, a loss of 12 paisas against the US dollar. In the open market USD was trading at PKR 280.