PSX extends bear run, dips 2,063 points

Gives up early gains on profit-taking, futures contract rollover

KARACHI:

The Pakistan Stock Exchange (PSX) faced a sharp downturn on Tuesday as initial gains evaporated amid heavy selling later in the day, pushing the benchmark index deep into the negative territory.

Following a positive beginning, the KSE-100 index surged to the intra-day high of 163,381 points. However, it turned course in the latter half as investors opted to lock in gains from recent rallies. The index plunged to the intra-day low of 159,805 before close and ended trading slightly above that level.

The benchmark KSE-100 index settled at 160,101.03, down 2,062.78 points, or 1.27%. Tuesday's slump marked the fifth straight day of losses, underscoring investor unease and mounting selling pressure.

Market observers said the decline was driven by fading investor confidence, economic headwinds and a lack of fresh triggers to revive buying interest. Many traders opted to stay on the sidelines, awaiting clearer signals from corporate results.

Arif Habib Limited (AHL) stated that the bearish spell continued, marking the fifth consecutive negative close and an intra-day break below 160,000 points. Only 19 shares advanced while 79 declined, with Lucky Cement (+1.67%), Pakistan Services (+1.69%) and Service Industries (+1.69%) contributing the most to index gains. Conversely, Hub Power (-2.18%), Meezan Bank (-1.82%) and Habib Bank (-1.9%) were the biggest drags on the index.

AHL mentioned that Lucky Cement posted its highest-ever quarterly consolidated after-tax profit of Rs21.9 billion (+23% year-on-year), translating into earnings per share (EPS) of Rs15.01 for 1QFY26.

Indus Motor (-0.92%) also reported its highest-ever quarterly after-tax profit of Rs6.72 billion (EPS Rs85.49), up 32% YoY. Along with the result, the automaker declared the highest quarterly dividend of Rs51 per share. Pakistan State Oil (+0.65%) announced 1QFY26 EPS of Rs20, a surge of 136% YoY.

KTrade Securities observed that the PSX continued to remain under pressure as the absence of positive triggers weighed on investor sentiment. The benchmark KSE-100 index fell 2,063 points, closing at 160,101.

The market's downward trajectory was primarily driven by selling in heavyweights such as Hub Power, Meezan Bank, Habib Bank, Oil and Gas Development Company, United Bank, Mari Petroleum, Pakistan Petroleum and Engro Fertilisers. In contrast, Lucky Cement lent some support following announcement of strong results.

Looking ahead, investor sentiment is expected to remain cautious during the rollover week, as participants adjust their positions amid the ongoing corporate earnings season, which is likely to shape market direction, KTrade noted.

Topline Securities, in its report, wrote that the local bourse "blew hot and cold", with the KSE-100 index witnessing a dramatic tug of war between bulls and bears. The mixed performance was largely attributed to the ongoing futures rollover week and a string of corporate earnings announcements, which kept investors cautious and triggered profit-taking.

Losses were mainly driven by the banking and energy sectors, which shaved 585 points off the index. On the other hand, cement, services and venture capital stocks provided some support, Topline noted.

Overall trading volume increased to 1.02 billion shares compared with Monday's tally of 1.01 billion. Traded value stood at Rs36.9 billion.

Shares of 476 companies were traded, of which 113 closed higher, 324 declined and 39 remained unchanged.

K-Electric led the volume chart with 94.6 million shares, falling Rs0.54 to close at Rs5.27. It was followed by WorldCall Telecom, with 83.3 million shares, down Rs0.10 to close at Rs1.79 and The Bank of Punjab, with 60.4 million shares, losing Rs0.08 to close at Rs37.16. Foreign investors were net buyers of shares worth Rs299 million, according to the NCCPL.