The Pakistan Stock Exchange (PSX) saw a sharp decline on Tuesday as profit-taking erased early gains, pushing the KSE-100 Index down 810 points. The benchmark index, which opened on a positive note, hit an intra-day high of 113,649.08 before intense selling pressure dragged it to a low of 111,828.11. By the end of trading, it settled at 111,935.38, reflecting a 0.72% drop.
Early Gains Wiped Out by Selling Pressure
The market initially showed buying momentum, but investors moved to secure profits, leading to a reversal. Analysts noted that the lack of fresh positive triggers and liquidity constraints contributed to the downturn.
The decline followed a 1,500-point drop on Monday, triggered by a global market sell-off after US President Donald Trump imposed tariffs on Mexico, Canada, and China. Although Trump later announced a temporary pause on Mexican tariffs, uncertainty continued to weigh on investor sentiment.
Institutional Selling Drives the Market Down
According to Topline Securities, Tuesday’s losses were mainly due to institutional selling. Stocks of ENGOH, MTL, FFC, BAHL, and PPL collectively contributed 430 points to the decline.
Analysts from Intermarket Securities predict that the market will remain range-bound in the near term due to the absence of strong catalysts.
Global Markets React to Trade Uncertainty
The global financial markets remained volatile as investors adjusted to sudden shifts in US trade policy.
- Hong Kong’s Hang Seng Index climbed 2.5%, led by electric vehicle stocks, despite an additional 10% tariff on Chinese goods.
- S&P 500 futures rose 0.4%, while the US dollar fluctuated against the Mexican peso and Canadian dollar.
- European markets saw modest gains of 0.2%.
- Oil prices remained under pressure, with Brent crude futures hovering around $75.46, close to a one-month low.
- Bitcoin, which had fallen to $91,000 earlier, rebounded to $102,000.
Pakistani Rupee Sees Marginal Gains
Despite stock market losses, the Pakistani rupee recorded slight appreciation against the US dollar. The currency gained Re0.08, settling at 278.96 in the inter-bank market, according to the State Bank of Pakistan (SBP).
Read: Stock Futures Dive Following Trump’s Tariff Decision
Market Volume and Leading Stocks
Trading activity increased, with the all-share index volume rising to 436.33 million shares from 401.46 million in the previous session. The value of traded shares also increased to Rs23.23 billion from Rs20.35 billion.
The top volume leaders were:
- WorldCall Telecom (54.62 million shares)
- Cnergyico PK (21.09 million shares)
- K-Electric Ltd (20.62 million shares)
Out of 440 traded companies, 129 saw gains, 255 recorded losses, and 56 remained unchanged.
Market Outlook Amid Uncertainty
With global economic tensions, tariff disputes, and uncertain investor sentiment, the PSX is likely to remain volatile. Market participants are looking for strong economic signals to drive future stability and growth.
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