Pakistan stocks decline in a volatile session as profit taking kicks in

Pakistan’s stock market opened on a positive note Thursday following the government’s announcement of electricity tariff cuts ranging from 12% to 17% for domestic consumers and industries, along with Prime Minister Shehbaz Sharif’s statement that his administration aims to eliminate circular debt in the energy sector within the next five years.

Despite early gains, the market saw a decline in the closing hours of trading as investors booked profits ahead of the weekend, analysts said.

Investor interest remained strong in the banking sector, with United Bank, Meezan Bank, MCB Bank, Habib Bank, and Bank Al Habib collectively contributing 1,020 points to the benchmark index. However, declines in Engro Holdings, Oil and Gas Development, Hubco, Mari Energies, and Pakistan Petroleum weighed on the market, as they cumulatively subtracted 778 points from the index.

Ahsan Mehanti, an analyst at Arif Habib Corp, said that pressure on equities stemmed from a record slump in global markets due to recession fears and concerns over U.S. tariffs.

"The decline in global crude oil prices, uncertainty over the impact of U.S. tariffs on Pakistan’s exports, and continued rupee instability all played a role in the bearish close," Mehanti said.

KSE-100 index gained 0.96% or 1,131.36 points to close at 118,938.11 points.

Currency

US dollar steadied against PKR in the inter-bank market. Pakistani currency lost 40 paisas to close at 280.56. In the open market USD was trading at PKR 282.

Indian Stocks

Indian stock markets ended the week with more losses, continuing their decline from the previous day. The drop was mainly due to concerns about Trump's trade tariffs and the uncertainty they created.

Stocks in the technology and commodity sectors fell the most because they depend heavily on the U.S. economy and global trade.

BSE-100 index shed 1.67% or 405.88 points to close at 23,947.78 points.

DFM General Index shed 1.51% or 75.76 points to close at 4,951.47 points.

Crude Oil

Oil prices plunged to their lowest since 2021, shaken by a surprise OPEC+ output hike and escalating U.S.-led trade tensions.

Initially planned supply increases were modest, but after a Thursday meeting, OPEC+ stunned markets by announcing a much larger boost—411k b/d in May instead of the expected 135k b/d.

Brent crude prices decreased by 6.02% to $65.92 per barrel.

Gold Prices

Gold prices are sliding for a second straight session on Friday, retreating from record highs as traders react to technical indicators and heavy selling triggered by equity market margin calls.

Despite rising U.S. recession fears, gold is struggling to maintain key levels after Thursday’s bearish reversal pattern.

International gold prices declined 0.79% to close at $ 3,078.41 per ounce. In the local market, gold prices remained unchanged at 325,500 per tola.