Pakistan stocks down on profit taking and foreign selling

The Pakistan stock market saw a wave of profit-taking on Wednesday as investors remained cautious ahead of the Pakistan Tehreek-e-Insaaf (PTI) protest scheduled for November 24.

Leading foreign funds have been selling to rebalance their portfolios, adding to the market's downward pressure.

Adding to investor concerns, there are reports of a revenue collection shortfall in November, raising the possibility of additional taxes.

Banks are also implementing new fees on large accounts to discourage deposit inflows as they aim to boost their Advance-to-Deposit Ratio (ADR) to avoid punitive taxes from the government.

KSE-100 index lost 310.21 points or 0.32% to close at 95,546.45 points.

The Dubai Financial Market (DFM) General Index gained 0.76% or 36.13 points to close at 4,767.85 points.

Commodities

Oil showed little movement after Ukraine used US-supplied ATACMS missiles to strike Russian territory for the first time.

These rising geopolitical tensions could provide short-term support for oil prices, as they highlight the risk of oil supply disruptions.

Additionally, concerns about crude supply disruptions have grown following a warning from Iran of a crushing response to Israel's recent airstrikes.

Brent crude prices increased 0.25% to $73.49 per barrel.

Gold has pulled back after reaching a one-and-a-half-week high. Geopolitical tensions from the ongoing Russia-Ukraine conflict continue to support gold as a safe-haven asset.

However, easing fears of a full-scale nuclear war and renewed US dollar buying have limited further gains.

Traders are waiting for upcoming speeches from key Federal Reserve officials before making new moves.

International gold prices eased 0.1% reaching $2,624.68 per ounce. In Pakistan, gold prices increased by PKR 3,600 to PKR 273,500/tola.

Currency

US dollar strengthened against PKR, up 0.04% in the inter-bank market. Pakistani currency settled at 278.04, a loss of 9 paisas against the US dollar. In the open market USD was trading at PKR 280.