KARACHI: Pakistani stocks closed lower, dragged down by oil stocks after Iran and six global powers reached a landmark nuclear deal that would see an easing of sanctions against Tehran and a gradual increase in its oil exports, raising fears of a glut in the market.

The benchmark 100-share index of the Karachi Stock Exchange closed down 0.14 percent, or 49.73 points, at 35,446.89.

“The market... closed 50 points lower primarily due to the poor performance of the oil sector as international oil prices dipped on Tuesday,” said Raheel Ashraf, a researcher at JS Global Capital Ltd.

Iran and six major world powers agreed on Tuesday that sanctions imposed by the United States, European Union and United Nations will be lifted in return for Iran agreeing to long-term curbs on a nuclear program that the West has suspected was aimed at creating a nuclear bomb.

The deal will allow Iran to sell its oil on international markets, bringing much needed cash into the country of 77 million people and further lowering prices at a time when Saudi oil output is at record highs.

Oil and Gas Development Co. Ltd. fell 4.90 percent to 168.25 rupees, while Pakistan State Oil Company Ltd. fell 0.98 percent to 375.49 rupees. Pakistan Oilfields Ltd. lost 3.25 percent to end at 355 rupees.

After rallying for several sessions, cement sector stocks also fell on profit-taking ahead of a long weekend for the Muslim holiday of Eid, said Mohammad Rizwan, vice president at Topline Securities.

D G Khan Cement Company Ltd. closed down 0.45 percent at 161.50 rupees.

Sui Southern Gas Co. Ltd. closed 4.99 percent higher at 45.23 rupees, while Sui Northern Gas Pipelines Ltd. rose 4.97 percent to 28.30 rupees after the government said gas prices would increase after the Eid break.

The rupee was steady at 101.74/101.77 against the dollar, compared with Thursday’s close of 101.72/101.77.

Overnight rates in the money market rose to 7.00 percent from Monday close of 6.50 percent.