KEY POINTS
- KSE-100 plunges 2,062 points (-1.27%) to close at 160,101
- Profit-taking follows policy clarity and recent market highs
- Oil and banking heavyweights lead decline
- Analysts view the drop as a “healthy correction” amid global caution
ISLAMABAD: The Pakistan Stock Exchange (PSX) experienced a sharp sell-off on Tuesday as investors booked profits following a string of strong sessions, while dragging the benchmark KSE-100 Index down by more than 2,000 points.
The slide reflected renewed caution in the market as participants reassessed short-term prospects after the latest policy clarity failed to inspire fresh buying interest, and stalled Istanbul talks between Pakistan and the Afghan Taliban raised geopolitical concerns.
Market watchers said the decline was largely technical, following weeks of aggressive gains that had pushed valuations to short-term highs.
Despite the government’s recent monetary and fiscal policy announcements offering some stability, traders appeared inclined to secure profits amid global uncertainty and subdued foreign inflows.
Analysts noted that the correction was overdue and largely in line with regional sentiment, where risk aversion has resurfaced due to volatile commodity and currency trends.
According to the PSX data portal, the KSE-100 Index closed at 160,101.02, down 2,062.79 points or 1.27 per cent from the previous session.
The All-Share Index declined 1.30 per cent to 97,525.54, while the KSE-30 Index shed around 559 points (−1.14 per cent).
The total market volume stood at 1.018 billion shares, with turnover value at Rs 36.94 billion. Market breadth remained weak, with 113 advancing, 324 declining, and 39 unchanged equities.
Large-cap stocks led the retreat, particularly in the oil and banking sectors, where earlier optimism gave way to bearish sentiment, resulting in sustained selling.
Analysts told Arab News that institutional investors likely engaged in selective offloading following the policy announcement, while retail participation stayed muted amid uncertainty over regional developments.
Despite the setback, most observers described the session as a “healthy correction” rather than a trend reversal, noting that the index remains comfortably above key support zones built over recent weeks.
As trading consolidates, the market is expected to stabilise near current levels unless external shocks or weak earnings trigger deeper losses.
