The Pakistan Stock Exchange (PSX) witnessed a negative session on Tuesday, as its benchmark KSE-100 Index closed lower by 700 points amid concerns related to the upcoming budget for the financial year 2025-26.
The KSE-100 started the session positive, hitting an intra-day high of 119,900.38.
However, selling pressure in the later hours kept the index under pressure until the end of the day.
At close, the benchmark index settled at 118,971.12, a decrease of 718.51 points or 0.6%.
“The benchmark index ended the day in the red, as investors treaded cautiously ahead of the upcoming budget announcement. With most developments already factored in, market sentiment remained subdued, awaiting fresh cues that could shift the momentum,” said Ismail Iqbal Securities, in its market report.
Meanwhile, Topline Securities said the decline was attributed to persistent profit-taking, compounded by the absence of any positive triggers.
Key heavyweights, including FFC, UBL, HBL, PPL, and ENGROH, collectively contributed to a 386-point decline in the index, Topline said.
On Monday, the PSX closed flat, entering a consolidation phase as it hovered near record highs. Investors adopted a cautious approach ahead of the upcoming budget announcement. The KSE-100 reached an intraday high of 120,285.55 points before closing at 119,689.63 on Monday, marking a modest gain of 40 points or 0.03%.
Internationally, Asian stocks rose on Tuesday while US Treasury yields steadied, allowing a bit of breathing room for the US dollar as investors took stock of the debt load of the world’s biggest economy and awaited trade deals.
Moody’s downgrade of its rating for US sovereign credit last week - due to concerns about that nation’s growing $36 trillion debt pile - led to a selloff in Treasuries on Monday, but that stabilised by Asian trading hours on Tuesday.
With little indication of trade deals on the way, markets are struggling for direction, analysts said.
The 30-year bond yield was 3.5 basis points lower at 4.906% after hitting an 18-month high of 5.037% in the previous trading session. Major US stock indexes recovered from early loss to end mostly flat.
That left the MSCI’s broadest index of Asia-Pacific shares outside Japan 0.36% higher, hovering near the seven-month high touched last week. Japan’s Nikkei gained 0.65% in early trade.
Chinese stocks were steady at the open after the local central bank cut benchmark lending rates for the first time since October, while five of China’s biggest state-owned banks also lowered deposit interest rates.
The blue-chip index was 0.15% higher, whereas Hong Kong’s Hang Seng Index rose 1%.
Meanwhile, the Pakistani rupee slipped lower against the US dollar, depreciating 0.05% in the inter-bank market on Tuesday. At close, the local currency settled at 281.92, a loss of Re0.15 against the greenback.
Volume on the all-share index increased to 437.92 million from 425.37 million recorded in the previous close.
The value of shares declined to Rs20.81 billion from Rs22.27 billion in the previous session.
At-Tahur Ltd was the volume leader with 39.63 million shares, followed by Fauji Foods Ltd with 30.26 million shares, and Gul Ahmed with 29.11 million shares.
Shares of 473 companies were traded on Tuesday, of which 177 registered an increase, 232 recorded a fall, while 64 remained unchanged.
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