Pakistan stocks close in negative zone amid lack of triggers

Pakistan stocks closed negative on Wednesday, experiencing a 0.48% decline. Market analysts attributed the drop to a lack of positive triggers, institutional selling, and the ongoing futures rollover week.

Fauji Fertilizer Company's (FFC) earnings for 2024 fell below market expectations, impacted by a PKR 4.0 billion impairment loss. This further pressured the market.

Top negative contributors to the index included FFC, Engro Fertilizer, Pakistan State Oil, MCB Bank, HUBCO, and Bank Al Falah, which collectively dragged the index down by 508 points.

KSE-100 index declined 0.48% or 543 points to close at 111,487.36 points.

Indian stocks surged on Wednesday, with IT and financial sectors leading the charge.

The rally comes ahead of the U.S. Federal Reserve's rate decision later today and in anticipation of the upcoming Union Budget.

BSE-100 index gained 1.2% or 288.68 points to close at 24,257.89 points.

DFM General Index lost 0.92% or 47.38 points to close at 5,129.35 points.

Commodities

Oil prices dropped after rising on Tuesday because protesters in Libya threatened to block oil exports from two terminals. However, the state oil company spoke with the protesters and confirmed that oil exports were back to normal.

Meanwhile, prices are getting a boost because people expect the U.S. to impose tariffs on Canada and Mexico, which would make oil more expensive.

Brent crude prices declined 0.92% to $76.78 per barrel.

Gold prices are staying high as traders wait for the Federal Reserve’s interest rate decision. Even though there were small losses during early European trading on Wednesday, gold prices remain strong.

The weak US Treasury bond yields and the US Dollar are helping gold maintain its value. Additionally, worries about President Trump's tariff policies are also supporting gold prices.

International gold prices decreased 0.03% reaching $2,759.34 per ounce.

Currency

US dollar eased against PKR in the inter-bank market. Pakistani currency gained 5 paisas to 278.87. In the open market USD was trading at PKR 281.