PSX Sees Choppy Trading as Global Risks Overshadow Monetary Stability
The Pakistan Stock Exchange (PSX) endured a highly volatile trading session on Tuesday, reflecting deepening investor anxiety amid the escalating Israel-Iran conflict, a weakening rupee, and the State Bank of Pakistan’s (SBP) decision to maintain the policy rate.
The KSE-100 Index fluctuated sharply throughout the session, registering an intra-day high of 666 points and a low of 409 points, before ending down 254.32 points, or 0.21%, at 121,971.04.
SBP’s Policy Hold Sparks Early Gains, Later Erased by Profit-Taking
The session started on a positive note following the SBP’s announcement to hold the benchmark interest rate, as markets initially interpreted it as a stabilizing signal. However, the relief rally proved short-lived.
“The KSE-100 crossed 122,892 points in early trading, but profit-taking pressure emerged quickly and pushed the market into negative territory,” said Ali Najib, Deputy Head of Trading at Arif Habib Limited.
Analysts attributed the selloff to cautious positioning amid global equity routs, import pressure, and speculative trading in small-cap stocks.
Geopolitical Tensions and Rupee Weakness Undermine Confidence
Investor sentiment remained fragile throughout the day, particularly as geopolitical tensions in the Middle East intensified. Concerns of direct US involvement in the Israel-Iran air war, along with Brent crude prices hovering around $76.70 per barrel, fueled inflationary fears for import-dependent economies like Pakistan.
Additionally, the Pakistani rupee’s weakness and a reversal in the current account position—a $103 million deficit in May versus a $47 million surplus in April—dampened confidence.
“Stocks closed lower amid a global equity rout, driven by geopolitical uncertainty and the SBP’s policy hold decision,” noted Ahsan Mehanti, Director at Arif Habib Corp.
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Top Gainers and Losers: Mixed Sectoral Performance
Despite the overall decline, some blue-chip stocks supported the index:
Contributors to Gains:
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UBL, HBL, Systems Limited, and OGDC collectively added 219 points to the index.
Major Drags:
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Pakgen Power, Lucky Cement, Engro Holdings, and Hub Power wiped off 291 points, according to Topline Securities.
This mixed sectoral performance highlights the market’s current indecisiveness in the face of uncertain macro and external developments.
Volume Leaders: Speculative Activity in Focus
Trading activity remained robust but slightly lower compared to the previous day:
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Total volume: 1.15 billion shares (vs. 1.22 billion on Monday)
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Trading value: Rs28 billion
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Total scrips traded: 473
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Advancers: 193
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Decliners: 244
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Unchanged: 36
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Top Volume Leaders:
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WorldCall Telecom: 239.8 million shares (down 1 paisa to Rs1.61)
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Pervez Ahmed Consultancy: 97.5 million shares (down Rs0.05 to Rs3.88)
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Sui Southern Gas Company (SSGC): 49.9 million shares (up Rs1.54 to Rs44.82)
Foreign investors remained net buyers, picking up Rs28.1 million worth of equities, according to the National Clearing Company.
Outlook: Caution to Prevail Amid Macro Uncertainty
According to JS Global’s Mubashir Anis Naviwala, the market’s broader trend remains uncertain and speculative interest dominates short-term moves. Investors are being urged to maintain a defensive approach and avoid aggressive exposure until clearer signals emerge.
PSX Gains Nearly 500 Points Amid Global Tensions and Stable Policy Rate by SBP
With tariff negotiations ongoing between Pakistan and the United States, and key policy directions expected in the upcoming FY26 federal budget, markets are likely to remain sensitive to both domestic and external news flows.
Conclusion: PSX Needs Stability as Global and Local Risks Weigh Heavily
The PSX’s performance on Tuesday underscores a growing disconnect between monetary stability and investor confidence, with external volatility, rupee devaluation, and rising oil prices overwhelming short-term optimism.
Until there’s clarity on regional security, exchange rate stability, and budget direction, PSX market volatility is expected to persist.