The Pakistan Stock Exchange (PSX) saw a pullback on Tuesday as profit-taking in key sectors weighed on the benchmark KSE-100 Index, erasing earlier gains. After hitting an intra-day high of 162,819.85, the index faltered under midday selling pressure, eventually settling at 161,692.49 — a loss of 291.59 points, or 0.18%.
Traders attributed the market’s weak performance to caution among investors, spurred by ongoing macroeconomic uncertainty and unclear policy direction. This prompted many to lock in profits from recent rallies. As a result, trading volumes slowed significantly as market participants adopted a wait-and-see approach.
The biggest declines came from index-heavy sectors such as oil and gas exploration, banking, and power generation. These sectors continued to face selling pressure throughout the session, despite brief recoveries in the afternoon.
Market sentiment remained subdued, with analysts predicting that the KSE-100 would remain range-bound unless clearer policy guidance or macroeconomic developments emerge to restore investor confidence. KTrade Securities noted that subdued participation and low volumes continued to limit any upward momentum.
Despite the overall downturn, the fertiliser sector provided some support, driven by gains in Fauji Fertilizer. Additionally, positive movements in Lucky Cement and Bank Alfalah helped mitigate some of the losses.
Looking forward, KTrade anticipates that investor sentiment will remain cautious, with a focus on rollover-related flows and ongoing monitoring of macroeconomic indicators. The next IMF tranche and regional geopolitical developments are expected to play a key role in influencing market direction.
Trading volumes rose to 590.5 million shares, up from 490.3 million the previous day, while the value of traded shares amounted to Rs22.1 billion. WorldCall Telecom led the volume chart, trading 59.2 million shares, but saw a Rs0.05 decline, closing at Rs1.85.
A total of 477 companies were traded, with 155 gaining, 284 losing, and 38 remaining unchanged.
