PSX falls further in absence of cues

Losses deepened at the Pakistan Stock Exchange (PSX) on Tuesday as the benchmark index closed lower by around 1,450 points over persistent selling and cautious investor sentiment in the absence of near-term positive cues.

It came following a steep fall of around 5,500 points a day ago, when market players offloaded their holdings in panic mainly due to the evolving geopolitical situation.

On Tuesday, the market opened in the green and staged a brief early rally, pushing the KSE-100 index to the intra-day high of 169,238. However, the positivity proved short-lived as selling emerged across key sectors, dragging the index into negative territory by mid-morning.

Banking stocks showed a mixed performance, with select names closing in the red amid profit-taking while others managed to post modest gains, reflecting sector-specific positioning. The index hit the intra-day low of 163,908 before recouping some losses in late trading. The market settled at 166,258.55, down 1,432.54 points, or 0.85%.

Topline Securities observed that investor sentiment remained fragile as the benchmark index continued to grapple with the aftermath of an 11% decline from its recent peak, keeping participants cautious and highly selective. The session witnessed volatility, with the index staging a brief rebound to the intra-day high of +1,546 points before intensified selling pressure pushed it to the low of -3,783 points.

Despite sharp swings, the market managed to recover part of its losses by the close, settling at 166,259, down 1,433 points. The see-saw movement reflected nervous positioning as investors balanced the emerging valuation comfort against lingering uncertainty and a lack of near-term positive triggers.

Index-heavy constituents like United Bank, Habib Bank, Fauji Fertiliser, Mari Energies and Hub Power were the principal laggards, collectively dragging the index down by 949 points. On the other hand, Lucky Cement, Pakistan Oilfields, MCB Bank, Engro Fertilisers and Attock Refinery provided partial support, adding 439 points, Topline said.

KTrade Securities wrote in its market wrap that the PSX extended its bearish spell as the benchmark index closed down by 1,433 points. The session stayed volatile amid persistent selling pressure, with the index sliding to the intra-day low of 163,908 and briefly breaking the key 165k support before recovering late in the session to settle back above 166k.

Selling was broad-based, putting pressure across banking, fertiliser, power, exploration & production, cement and technology sectors. Heavyweight names including United Bank, Habib Bank, MCB Bank, Fauji Fertiliser, Mari Energies and Hub Power dragged the index lower.

Despite the weak tone, selective buying appeared in a few stocks. Lucky Cement, Attock Refinery and Pakistan Oilfields managed to close in the green, supported by strong financial results and easing of recent foreign selling, particularly in Lucky Cement, which helped the market trim its intra-day losses, KTrade added.

"With more decline, the KSE-100 traded down to 163.9k intra-day before some demand came into the market to lift it to 166k by the end of the day," Arif Habib Limited (AHL) commented. Some 32 shares rose while 64 fell with Lucky Cement (+3.49%), Pakistan Oilfields (+2.76%) and MCB Bank (+1.09%) contributing the most to index gains. In contrast, UBL (-1.84%), HBL (-3.55%) and Fauji Fertiliser (-1.3%) were the biggest index drags.

Hub Power reported 1HFY26 earnings per share (EPS) of Rs17.16, down 5% year-on-year, and dividend of Rs10 per share, which came in above expectations. Pakistan Oilfields announced an EPS of Rs41.29 for 1HFY26, up 16% YoY, and a dividend of Rs27.5, AHL said.

Overall trading volumes jumped to 688 million shares compared to Monday's total of 461 million. The value of traded shares was Rs38 billion.

Shares of 487 companies were traded. Of these, 139 stocks closed higher, 292 fell and 56 remained unchanged.

K-Electric was the volume leader with trading in 65 million shares, falling Rs0.09 to close at Rs7.57. It was followed by The Bank of Punjab with 49 million shares, losing Rs0.49 to close at Rs29.70 and WorldCall Telecom with 46 million shares, edging down Rs0.01 to close at Rs1.31. Foreign investors sold shares worth Rs522 million, the National Clearing Company reported.