KARACHI — After soaring to a fresh intra-day peak, the Pakistan Stock Exchange (PSX) witnessed a sharp reversal on Tuesday as profit-taking in the latter part of the session erased early gains and dragged the benchmark KSE-100 Index down by more than 550 points.
The day began on a strong footing, with the KSE-100 Index surging to a record intra-day high of 137,747.60 points, fueled by optimism following Monday’s robust performance. However, selling pressure in key sectors such as banking, cement, and technology emerged in the final hours of trading, pushing the index to a session low of 135,826.40.
By close, the KSE-100 Index had shed 562.66 points, or 0.41%, to settle at 135,939.87.
The volatile session followed Monday’s historic rally, where the KSE-100 Index climbed by a massive 2,203 points, or 1.64%, to close at a then-record 136,502.54. That performance was underpinned by strong institutional buying, declining bond yields, and continued optimism surrounding macroeconomic indicators and corporate earnings.
Analysts attributed Tuesday’s downturn to natural market correction after consecutive days of gains. “Investors chose to book profits after a record-setting rally. This is a healthy adjustment,” said a capital markets strategist at a Karachi-based brokerage.
Despite the dip, market sentiment remains largely upbeat, supported by improved macroeconomic stability, anticipation of further foreign inflows, and expectations of positive earnings in the ongoing corporate results season.
Trading volumes remained strong, reflecting sustained investor engagement even amid the correction. Analysts expect the market to remain range-bound in the coming sessions, with upward momentum likely to resume if key support levels hold and macro indicators continue to improve.
