The Pakistan Stock Exchange (PSX) witnessed a roller-coaster session on Tuesday as the benchmark KSE-100 Index swung wildly before closing almost flat.
Despite initial selling pressure, the market recovered mid-session, only to lose most of its gains to profit-taking in the final hours.
The KSE-100 Index, a key indicator of market health, dipped to an intraday low of 132,696.35 points early on. However, as investor confidence improved, the index surged past the psychological 134,000 mark, hitting a high of 134,200.27. By the closing bell, it settled at 133,403.19—up by just 33.05 points or 0.02%.
Analysts at NBP Funds noted, "We believe the bull run can extend further—provided key IMF-backed reforms are implemented." These critical reforms include fiscal discipline, expanding the tax net, privatising inefficient state-run enterprises, and gradually phasing out unsustainable subsidies. While tough, these measures are seen as essential for Pakistan’s long-term macroeconomic stability and sustainable growth.
Key sectors leading the charge included automobile assemblers, commercial banks, cement, oil marketing companies (OMCs), and power generation. Heavyweights such as HUBCO, SSGC, and SNGPL remained in positive territory, reflecting renewed interest in index-heavy stocks.
The day’s subdued close followed Monday’s strong rally, where the PSX surged by 1,421 points—or 1.08%—closing at a record-breaking 133,370 points. Investors remained optimistic thanks to improving macroeconomic stability, strong corporate earnings expectations, and easing trade concerns.
On the global front, stock markets in Asia showed resilience despite renewed trade tensions triggered by US President Donald Trump. Wall Street dipped after Trump announced sharply higher tariffs on imports from 14 nations, including Japan and South Korea. However, his indication that the August 1 deadline was “firm, but not 100% firm” helped soothe nerves, lifting Asian stocks.
Japan’s Nikkei and South Korea’s KOSPI rebounded, rising 0.4% and 1.5%, respectively. Meanwhile, the MSCI Asia-Pacific index outside Japan edged up 0.2% in early trading.
Japanese Prime Minister Shigeru Ishiba called the tariff hike "deeply regrettable," vowing continued negotiations with the US. Tariffs on Japan and South Korea are now slated to rise to 25% from August 1, unless fresh deals are struck.
