Turnover fell to 50.1 million shares from 60.3 million shares traded on Monday.

"The KSE-100 index continued to decline on low volume as investors preferred to stay on the sidelines in the absence of any immediate trigger," said Samar Iqbal, a dealer at Topline Securities Ltd.

In the money market, overnight rates fell to end between 12 and 12.50 percent, compared with Monday's close of between 13.50 percent and 13.75 percent, amid increased liquidity in the interbank market.

Dealers said the next scheduled outflows were on Friday amounting to 32.5 billion rupees ($383.7 million).