Pakistan stocks close negative amid institutional selling

Pakistan stocks closed negative on Tuesday, driven largely by local institutional selling.

Stocks closed bearish amidst escalating fears of a global trade war following the imposition of U.S. tariffs. The market was further pressured by a slump in global crude oil prices.

Political instability, the suspension of USAID, and concerns over potential foreign outflows also contributed to the bearish sentiment.

Investors remain cautious as uncertainty continues to cloud the market.

KSE-100 index shed 0.72% or 809.63 points to close at 111,935.38 points.

On Tuesday, the Indian stock market saw strong buying across sectors, with capital expenditure and defence stocks rebounding sharply. A government official’s statement on a large order pipeline boosted defence stocks.

Global markets also benefited from US President Donald Trump's 30-day postponement of proposed tariffs on imports from Canada and Mexico.

BSE-100 index gained 1.62% or 397.4 points to close at 24,885.86 points.

DFM General Index gained 0.7% or 36.32 points to close at 5,219.08 points.

Commodities

Oil prices dropped on Tuesday after China added more taxes on some US imports in response to the Trump administration’s tariffs.

Washington imposed 25% tariffs on Canadian and Mexican imports and 10% on imports from China last weekend, which were set to start today, but deferred for a month.

Also, OPEC+ decided to keep their production policy the same at a meeting on February 3 and agreed to increase supplies starting next April.

Brent crude prices declined 1.17% to $75.07 per barrel.

The price of gold fluctuates slightly during the European session on Tuesday, staying near the recent peak. Investors are encouraged by US President Donald Trump's temporary pause on tariffs for Mexico and Canada after a border security deal.

This positive sentiment, combined with the Federal Reserve's cautious stance, increases US Treasury bond yields and strengthens the US Dollar, putting some pressure on gold prices.

International gold prices decreased 0.15% reaching $2,814.51 per ounce.

Currency

US dollar eased against PKR in the inter-bank market. Pakistani currency gained 9 paisas to 278.95. In the open market USD was trading at PKR 281.