Pakistan stocks decline on across-the-board profit taking

Pakistan stocks closed in the red on Tuesday, grappling with significant volatility as investors engaged in widespread profit-taking.

The day's trading reflected investor reactions to the central bank's latest decision to cut the key policy rate for the fifth consecutive time by 200 basis points to 13%.

The benchmark index experienced pronounced swings, hitting an intraday high of 869 points before plummeting to a low of 2,480 points. The volatility intensified in the latter part of the session, driven by increased profit taking that added downward pressure on the market.

Key stocks contributing to the downward trend included Mari Petroleum (MARI), Fauji Fertilizer Company (FFC), Lucky Cement (LUCK), Oil and Gas Development Company (OGDC), and Pakistan Petroleum Limited (PPL).

The KSE-100 index lost 1,308.72 points or 1.13% to close at 114,860.69 points.

Separately, the Indian stock market fell on Tuesday before important decisions from the US Federal Reserve. There was selling in many sectors, including PSU banks, auto, IT, financial services, pharma, FMCG, metal, and realty.

Major companies like Reliance Industries, Infosys, and HDFC Bank were part of the decline. Investors were cautious ahead of the Fed's December 18 meeting about possible rate cuts.

BSE-100 index shed 334.24 points or 1.28% to close at 25,863.10 points.

DFM General index gained 32.31 points or 0.64% to close at 5,079.85 points.

Commodities

Crude oil prices fell after Pemex, Mexico's state-owned oil company, announced it has restarted all its platforms in the Gulf of Mexico.

The end of the hurricane season and better weather means more oil supply will be available. Additionally, new economic data from China has raised worries about demand.

Brent crude prices lost 0.73% to reach $73.37 per barrel.

Gold prices didn't change much on Tuesday because investors were waiting for more information from the US Federal Reserve's policy meeting.

This week, gold prices have been pretty stable as people expect another interest rate cut by the US central bank.

Earlier, experts thought the central bank would cut rates by 1.5% this year. But if they cut rates in December, the total cut for the year would be 1%.

International gold prices declined 0.47% reaching $2,640.39 per ounce.

Currency

The PKR steadied against the US dollar in the interbank market, down 0.04%. Pakistani currency settled at 278.27 with a loss of 10 paisas. In the open market, USD was trading at PKR 279.