Pakistan stocks end lower amid volatility, profit-taking

Pakistan stocks closed in the red Wednesday after a turbulent trading session, as investors balanced optimism with caution amid ongoing global uncertainties.

The market started the day on a strong note, surging by as much as 648 points in early trading. However, the upward momentum lost steam in the second half, with profit-taking dominating activity, analysts said.

“The market opened on a strong footing, but the momentum fizzled out as profit-taking took center stage,” an analyst at Topline Securities said.

Market volatility was largely driven by renewed concerns over global economic stability, fueled by ongoing trade tensions between the United States and China.

An analyst at Ismail Iqbal Securities noted that the result season kept investors on edge, leading to choppy movements throughout the day.

Oil & gas exploration companies, technology & communication, and oil & gas marketing sectors were among the biggest decliners, collectively pulling the index down by 451 points.

United Bank emerged as the top performer of the day after announcing its first-quarter earnings, reporting its highest-ever quarterly profit of PKR 36 billion, with an earnings per share (EPS) of PKR 28.9. The bank’s board also declared a cash dividend of PKR 11 per share, further boosting sentiment for financial stocks.

KSE-100 index shed 0.65% or 755.40 points to close at 116,020.10 points.

Currency

US dollar gained against PKR in the inter-bank market. Pakistani currency lost 35 paisas to close at 280.92. In the open market USD was trading at PKR 282.3.

Indian Stocks

The Indian stock market began Wednesday on a cautious note, influenced by weak global trends and sectoral selling, particularly in IT and auto stocks.

However, strong performance in the banking sector helped lift sentiment, with most major sectoral indices turning positive. The PSU Bank index led the rally, surging over 2.45%.

BSE-100 index gained 0.46% or 112.54 points to close at 24,554.61 points.

DFM General Index shed 0.49% or 24.85 points to close at 5,053.41 points.

Crude Oil

Oil prices remained steady as markets weighed the US-China trade war's impact on growth and energy demand, alongside expectations of rising US crude inventories.

The International Energy Agency forecasts the slowest global oil demand growth in five years for 2025, with US production shrinking due to tariffs. Meanwhile, US crude inventories increased by 2.4 million barrels last week, while gasoline and distillate stocks fell by three million and 3.2 million barrels, respectively.

Brent crude prices increased by 0.9% to $65.25 per barrel.

Gold Prices

Gold surged past $3,300 per ounce on Wednesday, setting a new record as US President Donald Trump's ongoing trade war fueled heightened volatility in stocks and bonds.

The global stock markets, which had briefly regained some ground in the previous session, faltered once again after the US imposed further restrictions on Nvidia's ability to export advanced silicon chips to China.

International gold prices increased 2.62% to close at $ 3,306.68 per ounce. In the local market, gold prices increased by PKR 8,600 to 348,000 per tola.