PakStox Outlook

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.

After a remarkable 2,000-point surge and reaching a new all-time high last week, the market saw profit-taking this week. Despite hitting an intra-week record high of 86,520, selling pressure led the KSE Index to close 231 points lower, finishing the week at 85,250. Mutual funds were net sellers of a substantial $1.8 million today, marking a shift from their consistent buying trend, which had resulted in net purchases of $90.9 million since early September. Despite last day's net selling this week mutual funds were net buyers of a good amount of $ 7.5 million. The oil and gas sector experienced significant losses on the final trading day of the week. This sector, with a leading index weight, had been steadily rising due to the re-entry of local funds into the market. Overseas Pakistanis, typically less active in the Pakistan Stock Exchange (PSX), have joined foreign corporations in a consistent selling spree since the beginning of September, accumulating net sales of $ 6.6 million. ...