The Pakistan Stock Exchange (PSX) experienced heavy profit-taking on Tuesday, causing the benchmark KSE-100 Index to fall sharply by nearly 1,600 points. The decline reflected growing investor caution amid global uncertainty and renewed domestic economic concerns. The KSE-100 Index closed the day deep in the red, erasing early gains that briefly lifted market sentiment.
Volatile Trading Session
Trading at the PSX began on a positive note, with the benchmark index touching an intra-day high of 168,518.97 points. However, optimism faded quickly as investors began selling off positions to lock in gains from previous rallies. The index later plunged to an intra-day low of 165,997.21 points before settling at 166,173.74 — down by 1,578.66 points or 0.94%.
Brokerage firm Topline Securities attributed the sharp drop to “heavy profit-taking by local institutions,” which offset the early buying momentum. The report noted that institutional selling “dragged the market into the red zone” despite a positive start.
Key Stocks Drive Market Decline
The largest losses came from major companies including Hub Power Company (HUBC), Engro Corporation (ENGRO), Lucky Cement (LUCK), Mari Petroleum (MARI), and United Bank Limited (UBL). Together, these heavyweights shaved off nearly 986 points from the index.
Some relief came from Habib Bank Limited (HBL), Engro Fertilizers (EFERT), Askari Bank (AKBL), and Allied Bank (ABL), which added a combined 380 points. However, their impact was not enough to offset the broader market sell-off.
IMF Talks Add to Uncertainty
Adding to investor concerns, discussions between Pakistan and the International Monetary Fund (IMF) on Monday signaled a possible downgrade of the country’s GDP growth projection. The IMF and Pakistani authorities deliberated on revising the growth forecast for the current fiscal year from 4.2% to 3.5%.
Officials cited recent flood damage to infrastructure, agriculture, and livestock as key factors behind the revision. Business Recorder sources also reported that inflation may rise further due to the impact of floods and global commodity pressures.
These developments added a layer of caution to investor sentiment already shaken by profit-taking trends and geopolitical tensions.
Read: PSX Extends Record-Breaking Streak to Seventh Session
Market Mood Remains Bearish
Tuesday’s losses followed Monday’s negative session when the KSE-100 Index dropped 1,237.66 points or 0.73% to close at 167,752.41. Analysts said that escalating tensions with India and uncertainty over global markets continued to weigh on trading.
The recent pullback comes after a strong rally that had pushed the benchmark to record highs. Analysts believe the market is now undergoing a natural correction phase, with investors booking profits while awaiting clarity on macroeconomic trends.
Global Markets in Turmoil
The bearish tone at the PSX mirrored global market unease. Political instability in Japan and France shook investor confidence across Asia and Europe, while US markets remained subdued amid government shutdown concerns.
In Japan, the election of fiscal dove Sanae Takaichi as the new ruling party leader fueled expectations of continued monetary easing, briefly lifting the Nikkei index to a record high before profit-taking set in.
Meanwhile, France faced heightened uncertainty after the resignation of Prime Minister Sebastien Lecornu. The move rattled bond markets, pushing French OAT futures lower and weighing on the euro, which dipped 0.06% to $1.1706.
Despite a multi-billion-dollar chip deal between AMD and OpenAI, global equity markets remained cautious. The MSCI Asia-Pacific index outside Japan swung between small gains and losses, reflecting a lack of clear direction.
Rupee Strengthens Slightly
Amid stock market turbulence, the Pakistani rupee managed a modest gain against the US dollar. The local currency appreciated by 0.01% in the interbank market, closing at 281.22 against the greenback — a rise of Re0.03.
Currency traders said the rupee’s minor improvement was due to limited dollar demand and stable remittance inflows. However, they warned that rising import costs and external debt payments could pressure the currency in coming weeks.
Trading Activity and Volumes
Overall trading activity at the PSX slowed down. The total volume on the all-share index fell slightly to 1.266 billion shares, compared to 1.274 billion in the previous session. The total value of shares traded also dropped to Rs54.22 billion from Rs60.54 billion.
Pakistan Telecommunication Company Limited (PTCL) led trading with 180.61 million shares. Bank of Punjab (BOP) followed with 134.74 million shares, while Cnergyico PK recorded 90.72 million shares in turnover.
Out of 487 active companies, 183 saw gains, 267 declined, and 37 remained unchanged — reflecting broad-based selling pressure across sectors.
Outlook: Investors Await Clarity
Market experts believe the PSX will remain range-bound in the short term as investors digest recent developments. Rising inflation risks, the IMF’s growth downgrade, and political uncertainty continue to influence trading decisions.
Analysts also expect foreign investors to stay cautious until macroeconomic indicators stabilize. Any positive progress in IMF talks or fiscal reforms could help restore confidence, but sustained recovery will depend on consistent earnings growth and policy clarity.
Despite the ongoing correction, some analysts view the dip as a buying opportunity for long-term investors, particularly in undervalued blue-chip stocks. However, most agree that volatility is likely to persist in the near future.
Follow us on Instagram, YouTube, Facebook,, X and TikTok for latest updates
