Volatility at PSX, KSE-100 settles 1,100 points lower

Selling returned at the Pakistan Stock Exchange (PSX) as a diplomatic resolution to the US-Iran war that has disrupted shipments still seems unlikely, with the benchmark KSE-100 Index shedding over 1,100 points on Tuesday.

Trading opened on a highly positive note, with the index quickly surging to its intra-day high of 178,768.83 within the first few minutes of the session.

However, selling returned to the PSX, which intensified after mid-day, dragging the index steadily lower to an intra-day low of 177,043.10.

At close, the benchmark index settled at 177,083.22, down by 1,116.80 points or 0.63%.

“The Pakistan Stock Exchange witnessed a highly volatile trading session, with the benchmark KSE-100 Index surrendering early gains amid broad-based profit-taking. After opening on a positive note, investor sentiment weakened during the latter half of the session as selling pressure intensified across major sectors, erasing intra-day advances,” brokerage house Topline Securities said in its post-market report.

On the negative side, UBL, LUCK, ENGROH, OGDC, and PPL emerged as the largest drags on the benchmark, collectively eroding approximately 580 points from the KSE-100 Index, it added.

In a key development, Pakistan’s inflation reading was back in single digits, with CPI clocking in at 9.2% on a year-on-year (YoY) basis in July 2026, Pakistan Bureau of Statistics (PBS) data showed on Monday.

On Monday, PSX staged a strong recovery as easing geopolitical tensions in the Middle East and a sharp decline in international crude oil prices reignited investor confidence and triggered broad-based buying across key sectors.

The benchmark KSE-100 Index gained 2,105.91 points, or 1.20%, to settle at 178,200.02 points.

Internationally, Asian markets made cautious gains at the start of trading as investors followed a global rally, with oil prices holding near the lowest levels ​in weeks as the US-Iran conflict remained at a stalemate.

MSCI’s broadest index ‌of Asia-Pacific shares outside Japan was up 0.1%, led by South Korean shares rallying as much as 2.1%. Japan’s Nikkei 225 slid 0.3%, while S&P 500 e-mini futures nudged 0.1% higher.

Overnight, markets took confidence from ​data showing that US manufacturing activity increased to the highest level in more than ​four years in July, sending the Dow Jones Industrial Average to a record ⁠close.

Oil prices made limited gains as trading resumed in Asia, with Brent crude up 0.6% at $84.29 a barrel, after falling to a three-week low ​on Monday as US President Donald Trump said he had held off on a ​fresh attack on Iran as a gesture of goodwill in peace talks.

However, Tehran has denied that any negotiations ‌are ⁠taking place.

Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar on Tuesday. The local unit closed the day at 277.76, a gain of Re0.01 against the greenback.

Volume on the all-share index decreased to 711.27 million from 785.36 million recorded in the previous close.

The value of shares decreased to Rs25.87 billion from Rs33.14 billion in the previous session.

Pak Int.Bulk was the volume leader with 89.71 million shares, followed by Trust Brokerage with 86.05 million shares, and TPL Properties with 67.24 million shares.

Shares of 495 companies were traded on Tuesday, of which 161 registered an increase, 295 recorded a fall, and 39 remained unchanged.