KARACHI, May 21 — The Pakistan Stock Exchange (PSX) witnessed persistent selling pressure on Tuesday as concerns over the upcoming federal budget, particularly in relation to IMF conditions, weighed heavily on investor sentiment. The benchmark KSE-100 Index closed down by 718.51 points, or 0.6%, to settle at 118,971.12.
The downturn followed Monday’s tepid session, where the market closed flat after reaching a record intraday high. On Monday, the KSE-100 had touched 120,285.55 points before ending the day at 119,689.63, up just 40 points or 0.03%, signaling early signs of consolidation.
Tuesday’s pressure was broad-based, with heavyweights from the banking, automobile, and energy sectors leading the decline. Notable names trading in the red included MCB, UBL, PSO, SNGPL, MARI, OGDC, PPL, and POL.
“The benchmark index ended the day in the red, as investors treaded cautiously ahead of the upcoming budget announcement. With most developments already factored in, market sentiment remained subdued, awaiting fresh cues that could shift the momentum,” noted Ismail Iqbal Securities in its post-market commentary.
Market participants remain on edge amid expectations that the government’s FY26 budget—slated to be aligned with IMF directives—may include revenue-enhancing measures such as higher taxation and subsidy reforms, potentially affecting corporate profitability.
Analysts expect volatility to persist in the short term as clarity emerges on fiscal targets and sector-specific policies tied to the Fund’s program.
