Pakistan stock market soars to record high on reform hopes

Pakistan’s benchmark KSE-100 Index closed at an all-time high of 120,450 on Tuesday, fueled by renewed investor confidence and an improving macroeconomic outlook.

The index surged to an intraday high of 1,816 points as momentum picked up sharply after the Asian Development Bank (ADB) approved an $800 million loan under Pakistan’s public finance program, signaling strong international support for the country’s economic reforms.

"Adding further fuel to the rally, the IMF gave its nod to Pakistan’s budget proposals, reinforcing hopes of continued fiscal discipline and policy continuity," an analyst at Topline Securities said.

Ahsan Mehanti of Arif Habib Corp said the market’s bullish sentiment was broad-based, with stocks across multiple sectors pushing the index to record highs.

“Budgetary relief expected for oil refineries, real estate, and agriculture played a catalyst role in the bullish close at the Pakistan Stock Exchange,” Mehanti said.

KSE-100 index gained 1.32% or 1,573.07 points to close at 120,450.87 points.

Currency

US dollar gained against PKR in the inter-bank market. Pakistani currency shed 15 paisas to close at 282.12. In the open market USD was trading at PKR 284.15.

Indian Stocks

Indian stock markets fell on Tuesday, mainly due to losses in banking and IT stocks. The drop was caused by concerns that foreign investors might pull out money as U.S. bond yields remain high, making investments there more attractive. Trade uncertainties also added to the worries.

Additionally, shares of Adani group companies declined after a report by The Wall Street Journal said U.S. authorities were investigating the group over imports of Iranian gas.

Foreign investors, who own significant stakes in Indian financial and IT firms, sold shares for the second straight day after buying for five days. With U.S. Treasury bonds offering safe and high returns, foreign investors see less reason to invest in riskier markets like India, especially with global trade tensions continuing.

BSE-100 index shed 0.73% or 188.93 points to close at 25,757.62 points.

DFM General Index gained 0.68% or 37.13 points to close at 5,521.85 points.

Crude Oil

Oil prices stayed steady on Tuesday after rising earlier in the week. The market expects strong demand during the U.S. summer driving season to support prices.

On Monday, prices had climbed after investors digested OPEC+'s weekend decision to boost production by 411,000 barrels per day starting in July. This marks the group's third straight increase since April, when they began easing earlier production cuts.

Brent crude prices increased by 0.39% to $64.88 per barrel.

Gold Prices

Gold prices are slightly down but are still holding steady due to overall market conditions. Even though prices have dipped a little from their recent three-week high, gold is still supported by key factors.

A stronger US dollar and improved investor confidence have led some traders to cash in on recent gains. But ongoing market uncertainty and the possibility of lower interest rates are preventing bigger price drops.

International gold prices decreased 0.44% to close at $ 3,358.8 per ounce. In the local market, gold prices increased by PKR 1,000 to 354,100 per tola.