Pakistan stocks in range-bound session amid mixed investor sentiment

Pakistan's stock market experienced a range-bound session on Wednesday, as investor sentiment remained mixed following the latest MSCI review.

The MSCI review saw ABOT and SEARL included in the MSCI Frontier Market Index, while BFBIO, BIFO, and Power Cement were added to the MSCI Frontier Market Small Cap Index.

However, the review fell short of market expectations, leading to subdued activity in the stock market.

Investor uncertainty was heightened by pressure from foreign outflows and concerns over the proposed Tax Amendment Bill, 2024, which would limit non-filers investing at the Pakistan Stock Exchange (PSX).

Market analysts noted that the combination of these factors contributed to the cautious sentiment observed among investors, resulting in a lackluster trading session.

KSE-100 index shed 0.08% or 85.44 points to close at 112,924.94 points.

Indian stocks closed in the red on Wednesday, as the equity markets have been experiencing significant selling pressure.

This downward trend is driven by escalating tariff concerns and disappointing corporate earnings, which have adversely impacted overall market sentiment.

BSE-100 index shed 0.14% or 33.11 points to close at 24,024.31 points.

DFM General Index shed 0.59% or 31.59 points to close at 5,304.17 points.

Commodities

Oil prices dropped on Wednesday after three days of increasing.

The drop happened because of reports about rising U.S. crude oil stockpiles and comments from Fed Chair Jerome Powell indicating fewer rate cuts this year.

Brent crude prices declined 0.92% to $76.29 per barrel.

After Fed Chairman Jerome Powell’s testimony, gold prices experienced profit booking amid volatility.

Gold and silver prices dropped from their highs as Powell dismissed rate cut possibilities, emphasizing the US economy's good condition but noting that inflation is well above the Fed's 2% target rate, prompting caution on further rate cuts.

International gold prices declined 0.78% reaching $2,881.74 per ounce.

Currency

US dollar steadied against PKR in the inter-bank market. Pakistani currency shed 10 paisas to 279.26. In the open market USD was trading at PKR 281.