The Pakistan Stock Exchange (PSX) witnessed a massive downturn on Tuesday as the benchmark KSE-100 Index tumbled by 3,667 points, closing at 157,870, according to data reported by 24NewsHD TV Channel.
The steep decline marked one of the sharpest single-day drops in recent months, reflecting renewed investor anxiety and widespread profit-taking across key sectors.
Market analysts attributed the bearish momentum to aggressive selling by institutions and individuals amid growing concerns over macroeconomic uncertainty, global oil prices, and profit-booking after last week’s rally.
Trading overview and market performance
According to PSX data, 836.4 million shares were traded during the session, amounting to a total value of Rs 38.07 billion. Out of 483 active companies, 364 closed in the red, 78 recorded gains, and 41 remained unchanged.
Earlier in the day, selling pressure gripped the market right from the opening bell, with the benchmark index plunging by over 1,700 points in the early hours of trading. By 12:00 PM, the KSE-100 Index was hovering around 159,895 points, down 1,643 points (–1.03%) before sliding further in the second half of the session.
Key heavyweight sectors — including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and refinery stocks — all traded deep in negative territory.
Prominent index-heavy scripts such as Hub Power Company (HUBCO), Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), Pakistan Oilfields (POL), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), MCB Bank, Meezan Bank (MEBL), and National Bank of Pakistan (NBP) contributed heavily to the overall decline.
Contrast with Monday’s bullish session
The sharp fall came just a day after the PSX had closed on a positive note, gaining 1,945.50 points (1.22%) on Monday to settle at 161,538.41.
On Monday, investor optimism had driven the ready market turnover to 783.2 million shares with a traded value of Rs 36.37 billion, while the total market capitalization climbed to Rs 18.47 trillion.
Among the top performers, Unilever Pakistan Foods Limited rose by Rs 360.13 to close at Rs 28,999.99, while Exide Pakistan Limited gained Rs 59.32 to settle at Rs 652.51.
Conversely, PIA Holding Company Limited-B suffered a significant loss of Rs 1,507.77, closing at Rs 23,380.18, while Pakistan Services Limited dropped Rs 89.45 to end at Rs 1,374.30.
Analysts urge caution amid volatility
Experts believe the sudden reversal in market sentiment is likely due to profit-taking following last week’s sharp gains, compounded by uncertainties in fiscal policy, rising inflation, and fluctuations in international oil prices.
“The index remains vulnerable to external shocks and short-term corrections after strong rallies,” said one Karachi-based market strategist, adding that “long-term investors should stay cautious but not panic, as fundamentals of several blue-chip stocks remain intact.”
Despite the short-term dip, analysts expect selective buying to return once the market stabilizes, particularly in banking, energy, and technology sectors, which continue to show strong earnings potential.
