Pakistan stocks index extends rally, hits 17-month high
The stock market extended its rally on Friday as the benchmark KSE-100 index rose 684 points and touched a 17-month high. The rally came in line with expectations as analysts had anticipated that the index would resume its advance following de-escalation of tensions between Iran and the US. Washington expressed its intention to enter into serious negotiations with Tehran in a bid to bring an end to the looming tensions.
Earlier, stock trading in the first session kicked off positively and the KSE-100 index jumped in early hours and breached the 43,000-point mark. The first session ended with a gain of 632 points.
At close, the benchmark KSE 100-share Index recorded an increase of 683.98 points, or 1.61 percent, to settle at 43,207.05. Traded value stood at $100 million, up 12 percent and volumes came in at 400 million shares, up 10 percent. Shares of 369 companies were traded. At the end of the day, 235 stocks closed higher, 116 declined and 18 remained unchanged. The Bank of Punjab was the volume leader with 52.5 million shares, gaining Rs0.76 to close at Rs13.33.
US stocks hover near all-time highs
Wall Street hovered near all-time highs on Friday, as easing Middle East tensions and technology stocks offset concerns about slower-than-expected US jobs growth in December.
US stocks opened at record highs, brushing off government data that showed US jobs increased by 145,000 last month, below the forecast for a 164,000 rise.
The pace of hiring remained more than enough to keep the longest economic expansion in history on track, while Friday’s report also showed the jobless rate holding near a 50-year low of 3.5% and average hourly earnings rising 0.1% in the previous month.
Bank stocks were down 0.7%, causing Wall Street to pare some gains in late morning trading.
At 11:45 a.m. ET, the Dow Jones Industrial Average was down 68.90 points, or 0.24%, at 28,888.00, the S&P 500 was up 0.34 points, or 0.01%, at 3,275.04 and the Nasdaq Composite was up 8.63 points, or 0.09%, at 9,212.06.
Global equities resumed their record rally this week after the U.S. and Iran backed down on further military action, and hopes of an initial U.S.-China trade deal kept investors optimistic.
Apple Inc rose 0.5% after Credit Suisse became the latest brokerage to raise its price target on the stock, citing a better-than-feared iPhone 11 cycle so far.
Dragging the Dow lower, Boeing Co fell 1.5% after the company released hundreds of internal messages that contained harshly critical comments on 737 MAX development.
Japan’s Nikkei one of the region’s best performing indexes
Japan’s benchmark stock index has closed out 2019 as one of the region’s best performers. The Nikkei 225 (N225) fell 0.8 percent Monday on its last trading day of the year, but the index is still up 18 percent in 2019. That makes it the second best performer among major indexes in Asia— it falls behind China’s Shanghai Composite (SHCOMP), which has jumped 22 percent.
The Shanghai market still has one remaining trading day on Tuesday to close out the year, but it is already poised for its best year since 2014. Hong Kong’s Hang Seng Index (HSI) is up 9.6 percent this year, while South Korea’s Kospi (KOSPI) has risen 7.7 percent. The Nikkei reached its highest level of the year earlier this month after Japan announced a massive stimulus package to help its economy. Easing US-China trade tensions also helped lift sentiment.
Germany’s DAX flirts with all-time high a year
Just a year after it was plagued by political and economic woes, Germany’s DAX Index is flirting with a record high. The benchmark gauge is just points away from surpassing its January 2018 peak, following its biggest annual surge in six years. The risk-on sentiment has continued into 2020, with shares rallying on Thursday on optimism the fallout from the US-Iran conflict will be contained and amid positive economic data from Europe’s largest economy.
The DAX has seen a strong rebound since it sank to a 2016 low just over a year ago, helped by surging shares of industrials such as Linde and MTU Aero Engines AG, retailer Adidas AG, reinsurer Munich Re and software giant SAP SE. German shares also benefited from investors favoring cyclical stocks last year. The index fell as much as 24 percent from its all-time high in January 2018, plagued by trade uncertainty, Brexit worries and a slowing economy that saw numerous profit warnings from German companies, before it began its ascent last year. It is now about 0.4 percent away from its last peak.
France stocks lower at close of trade; CAC 40 down 0.09pc
France stocks were lower after the close on Friday, as losses in the Foods & Drugs, Gas & Water and General Financial sectors led shares lower.
At the close in Paris, the CAC 40 lost 0.09 percent, while the SBF 120 index lost 0.10 percent. Falling stocks outnumbered advancing ones on the Paris Stock Exchange by 306 to 248 and 99 ended unchanged. The CAC 40 VIX, which measures the implied volatility of CAC 40 options, was down 15.46 percent to 11.65. Gold Futures for February delivery was up 0.38 percent or 5.95 to $1560.25 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in February fell 0.60 percent or 0.36 to hit $59.20 a barrel, while the March Brent oil contract fell 0.23 percent or 0.15 to trade at $65.22 a barrel.
India indices gain on US-Iran truce
After a gap-up opening, Indian equities Thursday logged steady gains as investors cheered temporary de-escalation of a heated rhetoric between the United States and Iran.
In response to Iran’s missile attack, US President Donald Trump said the strikes had not harmed any US troops stationed there and that damage was minimal. Financials contributed the most towards the benchmark S&P BSE Sensex’s gains, pushing the index to close 634.61 points, or 1.55 percent, higher at 41,452.35 level. On the NSE, the broader Nifty50 reclaimed the crucial 12,200-mark after three trading session and settled at 12,215.40, up 190.05 points or 1.58 per cent.