PSX slips over 300 points at close as selling pressure returns after policy rate decision

The Pakistan Stock Exchange (PSX) gave up early gains on Tuesday as selling pressure engulfed the major sectors, pulling the benchmark KSE-100 Index down by over 384.81 points or 0.2% by the close. 

According to the PSX website, the market opened on a positive note, with the KSE-100 gaining more than 800 points in the early hours of trading. However, selling pressure soon returned, dragging the benchmark index to an intra-day low of 187,538.23, a decline of 1,049 points. The market recovered a little and closed at 188,202.85, a decrease of 348.81 points or 0.2%, from the previous close of 188,587.66. 

Losses were recorded in several key sectors, including automobile assemblers, cement, fertiliser, oil and gas exploration companies, oil marketing companies, power generation and refineries. 

The downward trend followed investors trimming positions amid recent volatility and the State Bank of Pakistan’s latest monetary policy decision, under which the Monetary Policy Committee, in its first meeting of 2026, held the policy rate at 10.5%, defying expectations of a rate cut.

On Monday, the PSX had already seen heightened volatility, with the KSE-100 retreating from record levels as investors engaged in profit-taking ahead of the policy announcement. The index closed 579.17 points, or 0.31%, lower at 188,587.66.

International markets provided mixed cues. Asian equities edged higher on Tuesday as investors positioned ahead of a wave of earnings from major US technology companies, though uncertainty surrounding fresh tariff measures announced by US President Donald Trump limited broader gains.

Nasdaq futures rose 0.2% as markets awaited results from large technology firms including Microsoft, Apple and Tesla. South Korea’s KOSPI recovered from early losses to trade 0.8% higher, despite concerns over proposed US tariffs.

Safe-haven assets strengthened amid global uncertainty, with gold rising 1% to around $5,066 per ounce, close to its recent peak, while silver surged 6.4% to about $110.60 per ounce.

Elsewhere in Asia, MSCI’s index of Asia-Pacific shares excluding Japan gained 0.4%. Japan’s Nikkei slipped 0.1%, weighed down by a stronger yen, which continues to cloud the outlook for export-oriented companies.