Pakistan stocks down as government might end agreements with power producers
Indian stocks settle flat, Dubai stocks up by 0.62%
Pakistan stocks declined on Tuesday on government’s decision to review and possibly terminate Power Purchase Agreement (PPA) with certain power producers over capacity payment issue.
This downward shift was largely driven by profit-taking, particularly in key stocks such as HUBC and EFERT, which reshaped the market sentiment. A broad sell-off in HUBC, EFERT, MCB, PPL, and BAFL collectively dragged the index down.
The KSE-100 index shed 0.45% or 366.86 points to close at 81,483.64 points.
Indian stocks settled flat as gains in shares of select heavyweights, such as HDFC Bank, Tata Steel and Power Grid, were offset by losses in shares of Hindustan Unilever, Kotak Mahindra Bank, ICICI Bank and Reliance Industries.
The start of the rate reduction cycle in the US has kept market sentiment positive. However, investors are booking some profit at record-high levels as concerns over rich valuation persist.
India’s BSE 100 Index shed 0.01% or 2.15 points to close at 27,462.96 points.
The Dubai Financial Market (DFM) General Index gained 0.62% or 27.4 points to close at 4,461.46 points.
Commodities
Oil prices rose on Tuesday on news of monetary stimulus from top importer China and concerns that tensions in the Middle East could hit regional supply, while a major hurricane loomed over the United States, the world’s biggest crude producer.
Crude rose following China’s decision to lower its key lending rates. The crude oil market has been eagerly awaiting further easing measures from Chinese authorities to address the economic slowdown.
Brent crude prices gained 2.37% to $75.65 per barrel.
Gold price retreated on Tuesday. An uptick in the US Treasury bond yields helps revive the US Dollar (USD) demand, which, in turn, prompts some profit-taking around the commodity amid slightly overbought conditions on the daily chart.
Any meaningful corrective decline for the gold price, however, seems limited in the wake of rising bets for more aggressive policy easing by the Federal Reserve (Fed).
International gold prices eased 0.01% reaching $2,625.94 per ounce. In Pakistan, gold prices increased by PKR 1,100 to PKR 273,000/tola on Tuesday.
Currency
US dollar eased against PKR, shedding 0.02% in the inter-bank market. Pakistani currency settled at 277.80, a gain of six paisas against the US dollar. In the open market USD was trading at PKR 280.5.
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