Stocks extend losing streak on foreign selling

Bears tightened their grip on the Pakistan Stock Exchange (PSX) on Tuesday as foreign corporate selling continued, sending the benchmark KSE-100 index down by around 1,300 points. The fresh loss came following a sharp sell-off a day ago, when the bourse plunged over 5,000 points.

Though trading commenced on a positive note on Tuesday, with the index climbing to the intra-day high of 176,131, the upward drive proved short-lived as investors opted to book profits. A rebound emerged around midday, offering a brief recovery. Later, selling intensified once again, pulling the index down to the session's low at 171,693. Losses were largely driven by heavyweight sectors, including auto, cement, banking, oil & gas exploration, OMCs, power generation and refining.

At close, the KSE-100 index recorded a decline of 1,303.52 points, or 0.75%, and settled at 173,150.42.

Topline Securities stated that the local bourse remained under pressure, extending its losing streak as persistent foreign corporate selling dampened sentiment and kept investors cautious. Heightened volatility defined the session, with the index climbing to the intra-day high of 1,677 points before aggressive selling pushed it to the low of -2,760 points. The benchmark settled at 173,150, down 1,304 points as offloading of heavyweight names weighed on the overall momentum.

Index-heavy constituents Pakistan State Oil, Habib Bank, Engro Holdings, United Bank, Fauji Fertiliser and National Bank led the decline, eroding 892 points. On the flip side, Oil & Gas Development Company, Pakistan Petroleum, Millat Tractors and The Bank of Punjab provided support, adding 359 points to the index.

In its 2QFY26 results, PSO posted an unconsolidated profit of Rs2.7 billion and earnings per share (EPS) of Rs5.82. Earnings came in below industry expectations due to higher-than-anticipated inventory losses and an elevated effective tax rate, Topline said.

KTrade Securities wrote that the PSX extended its weakening trend as the market continued to face pressure from margin calls, transition into the T+1 settlement cycle, along with law & order concerns, geopolitical tensions and domestic political noise. Intra-day, the index fell nearly 3,000 points but recovered sharply to close with trimmed losses, a slightly constructive sign despite the negative finish. Sector-wise, commercial banks remained under pressure while oil & gas provided relief after several weak sessions. OGDC, PPL and Mari Energies led gains, alongside The Bank of Punjab which declared a dividend of Rs1.5 per share, while Millat Tractors announced a payout of Rs20 per share, aiding the sentiment.

Arif Habib Limited (AHL) commented that the benchmark index's decline from its peak reached 10% as Tuesday's session hit the day's low at 171,700 points. Some 30 shares rose while 69 fell with OGDC (+2.86%), Pakistan Petroleum (+1.56%) and BOP (+4.72%) contributing the most to index gains. In contrast, PSO (-6.6%), Engro Holdings (-1.97%) and Habib Bank (-2.8%) were the biggest index drags.

PSO posted 1HFY26 EPS of Rs25.82, up 8% year-on-year, coming in below market expectations. BOP reported CY25 EPS of Rs4.71, up 18% YoY, and dividend of Rs2.5 per share – earnings were in line but payout was above expectations, AHL said.

Overall trading volumes decreased to 716 million shares against Monday's tally of 773 million. The value of traded shares stood at Rs40 billion.

Shares of 477 companies were traded. Of these, 128 stocks closed higher, 293 fell and 56 remained unchanged.

K-Electric remained on top on the volumes chart with trading in 122.5 million shares, falling Rs0.31 to close at Rs7.82. It was followed by BOP with 79.8 million shares, rising Rs0.87 to close at Rs34.12 and WorldCall Telecom with 35.5 million shares, edging down Rs0.01 to close at Rs1.52. Foreign investors sold shares worth Rs1.69 billion, the National Clearing Company reported.