Stock market climbs on earnings optimism, high global markets

Pakistan stocks closed higher on Tuesday, tracking gains in regional markets, as investors reacted to positive corporate earnings and an improved economic outlook.

An analyst at Ismail Iqbal Securities said the benchmark index closed in the green, in line with regional markets. “However, momentum tapered off in the latter half of the session as profit taking emerged, trimming earlier gains”.

Ahsan Mehanti at Arif Habib Corp said stocks closed higher in the earnings season rally at PSX amid expectations of Fitch Ratings upgrade of Pakistan's Long Term Foreign Currency Issuer Default Rating.

“Surging global equities, upbeat economic data on remittances and easing inflation played catalyst role in bullish close.”

Commercial banks, technology & communication, and oil & gas marketing sectors were the major contributors, cumulatively adding 233 points to the index.

KSE-100 index gained 0.33% or 385.47 points to close at 116,775.5 points.

Currency

US dollar eased against PKR in the inter-bank market. Pakistani currency gained 3 paisas to close at 280.57. In the open market USD was trading at PKR 282.3.

Indian Stocks

Indian stocks experienced a strong rally on Tuesday, fueled by easing global trade tensions. A key factor was the tariff relief announced by U.S. President Donald Trump, which bolstered investor confidence worldwide, according to market analysts.

The market also saw a notable decline in volatility, helping Indian equities recover from previous concerns over the U.S.-China trade disputes.

BSE-100 index gained 2.31% or 551.58 points to close at 24,442.07 points.

DFM General Index gained 0.43% or 21.98 points to close at 5,078.26 points.

Crude Oil

Oil prices edged lower on Tuesday after the International Energy Agency joined OPEC in cutting its oil demand forecast. However, the decline was tempered by U.S. President Donald Trump's hint at potential new tariff exemptions.

Uncertain U.S. trade policies have contributed to volatility in global oil markets, leading OPEC to reduce its demand outlook on Monday.

Meanwhile, risk assets such as equities and oil found some relief after Trump indicated he was considering adjustments to the 25% tariffs levied on foreign auto imports from Mexico and other regions.

Brent crude prices decreased by 0.37% to $64.64 per barrel.

Gold Prices

Gold prices stayed steady on Tuesday, trading around $3,230—close to the record high reached the day before. Investors are worried about the economic effects of the worsening US-China trade war, which is helping keep gold valuable as a safe investment.

Additionally, many expect that economic troubles caused by tariffs could push the US Federal Reserve to lower interest rates more aggressively in 2025. Since the US Dollar is also weakening, gold, which doesn’t offer interest but remains a reliable store of value, is benefiting even more.

International gold prices increased 0.34% to close at $ 3,220.2 per ounce. In the local market, gold prices increased by PKR 600 to 339,400 per tola.