Pakistan stocks close flat amid profit taking

Pakistan stocks closed nearly flat in a volatile session. Upside momentum remains strong and refineries have seen solid gains on Wednesday.

Attock Refinery (+2.38%), National Refinery (+6.61%) and Pakistan Refinery (+5.26%). The sector has been consolidating for most of the year and seen large drawdowns. They are now at levels from where upside can resume and the sector can outperform.

The session experienced significant volatility, peaking at 86,451 and dipping to 85,444, largely due to profit-taking and the index’s inability to sustain levels above 86,000. The market was primarily supported by local institutions’ buying activity.

Key contributors to the index included MCB Bank, Lucky Core Industries (LCI), Bank Al Habib (BAHL), Hub Power Company, and Habib Bank.

The KSE-100 index gained 0.01% or 5.3 points to close at 85,669.28 points.

Indian stock markets continued their upward trend, buoyed by the Reserve Bank of India’s (RBI) decision to keep the repo rate steady at 6.5 percent and adopt a neutral stance. This decision bolstered investor confidence, resulting in a positive market movement.

Analysts predict that the markets might maintain this positive trajectory, especially with potential rate cuts from the US Federal Reserve on the horizon. However, they also warn that individual stock corrections could happen based on earnings results.

India’s BSE 100 Index gained 0.09% or 23.79 points to close at 26,523.43 points.

The Dubai Financial Market (DFM) General Index shed 0.2% or 8.72 points to close at 4,420.28 points.

Commodities

Oil prices dropped after an unexpected US inventory build, lack of Chinese stimulus, and potential ceasefire signals in the Middle East.

Crude oil prices started trade unchanged after the U.S. inventory build surprised traders.

Brent crude and West Texas Intermediate are higher than a week ago but have dipped from recent peaks. Traders had anticipated Israel’s response to Iran’s missile attack, which so far has only involved strikes on Lebanon, leading to ceasefire reports.

Brent crude prices fell 0.38% to $76.89 per barrel.

Gold prices eased influenced by geopolitical tensions and changing economic data. Recent peace talks in the Middle East, rising US Treasury yields, and stagnant Chinese gold purchases have put pressure on gold prices, causing fluctuations in the market.

International gold prices declined 0.02% reaching $2,621.61 per ounce. In Pakistan, gold prices declined by PKR 3,000 to PKR 271,700/tola on Wednesday.

Currency

US dollar remained steady against PKR, up 0.02% in the inter-bank market. Pakistani currency settled at 277.72, a loss of 05 paisas against the US dollar. In the open market USD was trading at PKR 280.