Today, once again, 'foreign corporates' were the major net sellers at PSX, with a net sale of $15.9 million, which was absorbed by mutual funds. Since last Friday, the 'foreign corporates' have made a total net sale of nearly $28 million worth of shares at PSX, while local mutual funds have made a net purchase of $17.4 million. The KSE100 Index has risen to a record high, surpassing the 82k mark. Imagine how much higher the Index would have climbed if the 'foreign corporates' had not been selling, particularly as investors in local mutual funds began shifting from the money market to the equity market following a drop in the policy rate from the record high of 22%.
Oil prices were under pressure this week. Brent crude oil futures fell 1.9% to $73 per barrel on Friday, registering the biggest weekly loss since early September, with prices dropping over 7%. The decline was attributed to weaker demand forecasts from OPEC and the International Energy Agency (IEA), slowing economic growth in China, and signs of easing geopolitical tensions in the Middle East. Both OPEC and the IEA revised down their demand forecasts for 2024 and 2025. China's refinery output declined for the sixth consecutive month, impacted by weak fuel demand and the growing adoption of electric vehicles (EVs). Meanwhile, U.S. crude oil production reached a new record last week. Although a drawdown in U.S. crude inventories and stronger-than-expected retail sales in September provided some support to oil prices, easing concerns about a broader conflict in the Middle East exerted additional downward pressure on the market.