Pakistan stocks consolidate amid foreign outflows

Pakistan’s stocks faced consolidation as selling from high net worth individuals and institutions ahead of roll over week was observed.

Government actions on IPPs payments, weak global crude oil prices, and delays in the privatization of SOEs were key factors leading to the bearish close.

Indus Motor (+2.35%), Habib Metropolitan Bank (+1.74%), and Engro Fertilizer (+0.39%) were the top contributors to index gains.

The market is expected to remain flat and sluggish in the near term due to an ongoing shift in asset allocation from fixed income to equities.

The KSE-100 index shed 0.72% or 620.23 points to close at 85,585.43 points.

On Thursday, Indian stocks saw a significant sell-off. This decline was largely driven by auto stocks, following Bajaj Auto’s disappointing festival sales commentary. The negative sentiment extended to other auto stocks, contributing to the market downturn.

The market breadth was notably negative, with 2,690 stocks declining compared to 1,272 advances on the BSE. Intense selling pressure was observed in realty, consumer discretionary, and consumer durable stocks, further dragging the markets lower.

India’s BSE 100 Index lost 1.08% or 287.7 points to close at 26,234.66 points.

The Dubai Financial Market (DFM) General Index shed 0.59% or 26.63 points to close at 4,458.67 points.

Commodities

Oil prices stayed mostly unchanged on Thursday. Investors are waiting for news about the Middle East, U.S. oil inventory data, and China’s stimulus plans.

On Wednesday, oil prices went down after OPEC and the International Energy Agency lowered their demand forecasts for 2024 and 2025.

Prices also dropped because fears of an Israeli attack on Iran disrupting oil supplies have lessened. However, there is still uncertainty about the conflict in the Middle East.

Brent crude prices increased 0.11% to $74.30 per barrel.

In the international market, gold prices per ounce rose due to uncertainty surrounding the US election and expectations of further interest rate cuts by major central banks.

The focus also shifted to various US economic data. Investors are turning to safe-haven gold as a hedge against the election-related uncertainty.

International gold prices increased 0.21% reaching $2,679.98 per ounce. In Pakistan, gold prices decreased by PKR 700 to PKR 277,900/tola on Thursday.

Currency

US dollar eased against PKR, down 0.02% in the inter-bank market. Pakistani currency settled at 277.79, a gain of 5 paisas against the US dollar. In the open market USD was trading at PKR 280.