KARACHI – The Pakistan Stock Exchange (PSX) witnessed a volatile session on Tuesday as investors engaged in profit-taking after an early upward rally. The benchmark KSE-100 Index initially surged by more than 700 points, reaching 168,518 points, before losing momentum due to broad-based selling pressure across major sectors.
Despite beginning the day on a bullish note, market sentiment soon turned cautious as heavy selling was observed in key sectors such as cement, banking, fertilisers, oil and gas exploration, and refineries. Prominent stocks including ARL, MARI, OGDC, POL, PPL, PSO, and WAFI moved into negative territory, pulling the index down from its intra-day highs.
Read more : PSX loses 1,237 points to close at 167,752
Moreover, the market mood was further dampened by developments in Pakistan’s ongoing talks with the International Monetary Fund (IMF). Both parties reportedly discussed revising Pakistan’s GDP growth projection downward to 3.5% for the current fiscal year, compared to the government’s earlier target of 4.2%. This adjustment reflects the lingering economic damage caused by floods that disrupted agriculture, infrastructure, and livestock.
Read more : PSX drops 1,200 points amid IMF concerns
Additionally, analysts warned that the destruction from recent floods, coupled with persistent external pressures, may contribute to higher inflation levels in the months ahead. Investors, already cautious amid rising geopolitical tensions, chose to book profits rather than take fresh positions, leading to increased volatility across the trading session.
On Monday, the PSX had also closed in the red, shedding 1,237.66 points or 0.73%, settling at 167,752.41 points. Market experts suggest that continued uncertainty in global and domestic economic conditions could keep trading choppy in the near term, as investors await clearer signals from the IMF discussions and policy decisions.