Pakistan stocks fall amid global equity rout and weak crude oil prices

Pakistan's stock market experienced a volatile session on Monday, closing in the red as bearish sentiment took hold amid a global equity rout and weak crude oil prices.

There was also a rumor in the market the central bank might keep the interest rates, which impacted automobile and cement sectors.

The trading day began on a positive note, but momentum quickly dissipated as investors reacted to weaker-than-expected financial results from MARI Petroleum.

The company's earnings per share (EPS) of PKR 9.3, coupled with no cash payout, fell short of market expectations, significantly dampening investor sentiment.

Substantial declines in MARI Petroleum, along with heavy losses in key stocks such as ENGRO, PSO, HUBCO, and Pakistan Petroleum, weighed heavily on the market. These declines collectively contributed to a loss of 783 points.

KSE-100 index declined 1.18% or 1,360.16 points to close at 113,520.32 points.

The Indian stock markets went down for the second day in a row on Monday.

This was due to poor company results, worries about US trade policies, and foreign investors pulling out their money.

BSE-100 index shed 1.45% or 352.13 points to close at 23,864.78 points.

DFM General Index lost 0.65% or 33.89 points to close at 5,191.65 points.

Commodities

Oil prices experienced a slight increase on Monday, as traders remained cautious despite the United States easing its initial threats of sanctions against Colombia, which alleviated immediate concerns about disruptions in oil supply.

Market analysts noted that the outlook for oil markets remains somewhat bearish.

Efforts by former President Donald Trump to enhance U.S. crude production and secure international markets continue to influence market dynamics, potentially skewing the market to the downside.

Brent crude prices dipped 0.08% to $78.44 per barrel.

Gold prices went down on Monday because the dollar got stronger after President Trump briefly put tariffs on Colombia.

Even a temporary move towards tariffs boosted the dollar's value, which pushed gold prices down.

A stronger dollar means items priced in dollars, like gold, become more expensive for buyers from other countries, reducing demand.

International gold prices decreased 0.1% reaching $2,770.13 per ounce.

Currency

US dollar steadied against PKR in the inter-bank market. Pakistani currency shed 8 paisas to 278.83. In the open market USD was trading at PKR 281.