Pakistan stock market ends flat amid mixed sentiments

Pakistan’s stock market closed relatively flat Tuesday, with analysts attributing market activity to corporate earnings announcements during the ongoing result season.

Ahsan Mehanti, analyst at Arif Habib Corp, cited late-session pressure from global bearish trends, a weakened rupee, and declining global crude oil prices as factors contributing to the flat close.

However, Mehanti highlighted positive sentiment driven by strong financial results, expectations of policy easing by the State Bank of Pakistan (SBP), government efforts on resolving U.S. tariff issues, and anticipation of an International Monetary Fund (IMF) tranche release next month.

Investor sentiment remained buoyant despite subdued activity, according to Topline Securities. Fertilizer, pharmaceutical, and automobile assembler sectors collectively added 497 points to the index, showcasing their role as key contributors during the session.

KSE-100 index gained 0.04% or 46.97 points to close at 118,403.2 points.

Currency

US dollar eased against PKR in the inter-bank market. Pakistani currency gained 10 paisas to close at 280.77. In the open market USD was trading at PKR 282.3.

Indian Stocks

The Indian stock markets continued their upward momentum for the sixth consecutive day, driven by a strong performance in banking stocks. On Tuesday, investor sentiment received a further boost from the Reserve Bank of India's (RBI) liquidity-enhancing measures.

These measures helped counterbalance the negative global signals stemming from the retaliatory tariffs introduced by U.S. President Donald Trump.

BSE-100 index gained 0.23% or 57.04 points to close at 25,315.70 points.

DFM General Index gained 0.59% or 30.05 points to close at 5,134.40 points.

Crude Oil

Crude oil prices steadied today after Monday's decline, with earlier gains driven by traders covering short positions. Additionally, OPEC+ production data revealed a reduction of 360,000 barrels per day in March, further supporting the market.

Brent crude prices increased by 1.06% to $ $66.96 per barrel.

Gold Prices

The surge in gold prices is driven by mounting pressure on the Federal Reserve and its Chairman, Jerome Powell. Former U.S. President Donald Trump has criticized Powell for keeping interest rates high, alleging that rates were reduced during Joe Biden's presidency.

Reports suggest Trump is considering replacing Powell with someone who would focus on aggressively cutting U.S. interest rates. This push for immediate rate cuts has sparked concerns among traders and market participants about the Federal Reserve's independence.

International gold prices increased 3.8% to close at $ 3,441.17 per ounce. In the local market, gold prices increased by PKR 5,900 to 363,700 per tola.