Pakistan stocks adjust on profit taking, Indian stocks surge on foreign inflows

Pakistan stocks commenced the roll-over week on a negative note as profit taking was witnessed across the board.

Selling was largely seen in HUBC, MARI, PPL, BAFL, and OGDC, which posted 7% decline in profits for FY24 compared with previous year.

Outflows related to the FTSE rebalancing also expedited as the change began to take effect from Monday. A total net flow of $19.3 million was seen in the last two days of the last week.

The KSE-100 index shed 0.27% or 223.95 points to close at 81,850.5 points.

Indian equities scaled their new high levels on Monday, helped by strong foreign fund inflows and a largely firm trend in Asian markets.

In the last week of September, investors will closely monitor key market triggers such as domestic and global macroeconomic data, monthly derivates expiry, foreign fund inflows, crude oil prices, and other global cues.

India’s BSE 100 Index gained 0.67% or 183.54 points to close at 27,465.11 points.

The Dubai Financial Market (DFM) General Index shed 0.05% or 2.31 points to close at 4,434.06 points.

Commodities

Oil prices edged higher after the Federal Reserve’s aggressive 50 basis point rate cut last week, which helped stabilize risky assets, including crude oil. Additionally, a temporary reduction in U.S. crude supply, caused by Hurricane Francine, has lent support to the market despite ongoing concerns about weakened demand from China, the world’s largest oil importer.

Brent crude prices gained 0.38% to $74.77 per barrel.

Gold price surged on Monday, supported by a softer Greenback. The start of a monetary easing cycle of the Federal Reserve’s (Fed) and the expectation of deeper rate cuts this year might underpin the non-interest-bearing gold price.

Furthermore, the rising geopolitical tensions in the Middle East might lead to fresh allocation towards safe-haven assets like gold.

International gold prices gained 0.14% reaching $2,624.03 per ounce. In Pakistan, gold prices declined by PKR 600 to PKR 271,900/tola on Monday.

Currency

US dollar remained steady against PKR, gaining 0.01% in the inter-bank market. Pakistani currency settled at 277.86, a loss of 03 paisas against the US dollar. In the open market USD was trading at PKR 280.5.