Pakistan stocks closed lower on profit taking amid earnings season

Pakistan stocks closed on a negative note on Friday, with indices gradually losing points throughout the session.

The decline was largely attributed to the ongoing earnings season, as investors adjusted their portfolios and engaged in profit-taking.

Weak global crude oil prices, uncertainty over the outcome of tax reforms ahead of the International Monetary Fund (IMF) review to release the next tranche under the Extended Fund Facility (EFF), and a weak rupee played a catalyst role in the bearish close.

Commercial banks, cement, and oil and gas exploration companies were the major laggards, cumulatively shedding 669 points from the index.

KSE-100 index shed 0.82% or 938.23 points to close at 112,800.93 points.

On Friday, Indian equity markets faced significant pressure due to declines in the auto and financial sectors. The sell-off was exacerbated by a sharp downturn on Wall Street, coupled with worries about potential disruptions from President Trump's proposed tariffs.

Persistent inflation in the U.S. and the Federal Reserve's cautious stance on rate cuts also added to investor uncertainty.

BSE-100 index declined 0.66% or 157.57 points to close at 23,783.31 points.

DFM General Index shed 0.39% or 20.96 points to close at 5,359.25 points.

Commodities

Oil prices went down on Friday but still had a chance to end the week higher because of supply problems in Russia and uncertainty about a peace deal in Ukraine.

On Friday, crude oil prices were affected by an increase in U.S. crude oil reserves, while gasoline and other fuel inventories decreased last week due to seasonal maintenance at refineries, the Energy Information Administration reported on Thursday.

Brent crude prices decreased by 0.73% to $75.92 per barrel.

Gold prices dropped on Friday morning, following a sharp increase to record highs on Thursday due to worries about US trade tariffs and geopolitical issues.

International gold prices decreased by 0.24% reaching $2,933.31 per ounce.

Currency

US dollar steadied against PKR in the inter-bank market. Pakistani currency closed at 279.57. In the open market USD was trading at PKR 281.