KARACHI:
Pakistan Stock Exchange (PSX) closed sharply lower on Tuesday, with the benchmark KSE-100 index shedding 1,199.14 points, or 0.64%, to settle at 186,255.55. The selloff followed a brief rally of 375 points to an intraday high of 188,126.68, as profit-taking and weak sentiment in Asian equity markets dominated trading dynamics.
Global equity declines in Japan, South Korea, and Taiwan prompted regional investors to reduce positions, compounding domestic caution. Key sectors—including auto assemblers, cement, commercial banks, fertilizers, oil and gas, and power—experienced heavy selling pressure. The index briefly dipped to 186,189.21 before a slight recovery. Analysts attributed the slump to post-rally profit-taking, noting that the KSE-100 remains near historic highs, while medium-term bullishness persists due to improving economic indicators, a current account surplus, and structural reforms. AKD Securities’ Mohammed Awais Ashraf highlighted Panda Bond issuances and a stronger external account position as key supportive factors.
Fixed-income yields falling further tilted investor preferences toward equities trading at a forward price-to-earnings ratio of 6.8x. Sectors poised to benefit from monetary easing and energy chain reforms, such as energy chains, are expected to maintain focus. Arif Habib Limited (AHL) projected index support at 185,500–186,000, with potential progression toward 190,000. Meanwhile, selective share sales and strong institutional buying in Bank AL Habib (+2.54%), Habib Metropolitan Bank (+1.08%), and Ibrahim Fibres (+10%) offered limited counterbalance to broad declines.
Corporate developments included Select Technologies securing Rs1.3 billion via a share offer for 38.4 million shares, surpassing its public subscription target of 22.2 million. Engro Vopak Terminal announced a feasibility study for Pakistan’s first refrigerated LPG facility with S&P Global Energy. Despite the downturn, trading volumes surged to 984.8 million shares (Rs45.7 billion value). TPL REIT Fund I led trading activity with 75.7 million shares, rising to Rs10.63. Foreign investors offloaded Rs34.5 million worth of shares, per National Clearing Company data.
“The decline is prudent profit-taking rather than a fundamental shift. Improved macro conditions, lower oil prices, and the earnings season ahead offer underlying strength,” stated KTrade Securities. The critical range remains 185,500–186,000, with analysts underscoring long-term optimism amid regional and structural tailwinds.
