Pakistan stocks dip amid profit booking

After a robust two-day buying spree by local mutual funds, Pakistan stocks faced a downturn on Wednesday as investors engaged in profit booking, leading to a volatile trading session.

The benchmark index ended the day on a negative note, steadily losing points throughout the session. Profit taking dominated market activity, which kept overall sentiment subdued.

Engro Holdings, Oil & Gas Development Company, Pakistan Petroleum, Mari Petroleum, and Pakistan State Oil were the main contributors to the decline, collectively shaving off 417 points from the index.

Market analysts said the negative trend was anticipated after the recent gains, and they expect fluctuations to continue as investors reassess their positions.

KSE-100 index shed 0.58% or 665.76 points to close at 113,862.33 points.

US dollar eased against PKR in the inter-bank market. Pakistani currency closed at 279.61. In the open market USD was trading at PKR 281.3.

DFM General Index gained 0.18% or 9.55 points to close at 5,351.98 points.

Commodities

Oil prices stayed steady on Wednesday. This happened because data showed that oil stockpiles in the US, the biggest oil user in the world, went down unexpectedly. At the same time, there were worries that US tariff policies could disrupt global oil supply.

The American Petroleum Institute (API) reported that US crude oil stocks dropped by 640,000 barrels last week, while experts had predicted an increase of 2.3 million barrels. This unexpected drop suggested that demand in the US is growing, which pushed oil prices slightly higher.

Brent crude prices decreased by 0.01% to $73.01 per barrel.

Gold prices showed mixed performance, regaining some lost ground after hitting a one-week low in the previous session. This movement comes as investors take profits amid ongoing concerns over trade war tensions.

Despite a strong rally this year, with gold reaching multiple record highs, the precious metal is now experiencing a period of profit-taking as investors reevaluate their positions.

International gold prices decreased by 0.28% reaching $2,938.03 per ounce.