After two consecutive days of strong gains, the Pakistan Stock Exchange (PSX) faced renewed selling pressure on Tuesday, with investors opting to book profits. The benchmark KSE-100 index tumbled by more than 1,500 points as market sentiment turned cautious.

The trading day started on a positive note, but optimism faded quickly. The KSE-100 index moved between an intraday high of 163,384.95 and a low of 161,159.26 before closing at 161,281.77 — a sharp decline of 1,521.39 points, or 0.93%.

According to Topline Securities, “After two sessions of solid recovery, the local bourse witnessed renewed bearish momentum as investors resorted to profit-taking.” Heavyweight stocks, including ENGRO, MARI, BAHL, MCB, and TRG, dragged the market down collectively by 543 points.

Adding to the cautious mood, FBR Chairman Rashid Mahmood Langrial ruled out introducing new taxation measures despite a revenue shortfall of Rs275 billion for the July–October 2025-26 period. His remarks signaled that the government will stick to its existing fiscal framework — a move that some investors viewed as a sign of tightening liquidity in the coming months.

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Just a day earlier, the market had started the week on a strong note, gaining 1,171 points on the back of positive regional sentiment and relief following the Pakistan–Afghanistan ceasefire. However, that optimism was short-lived as Tuesday’s session saw selling pressure dominate trading floors once again.

On the international front, Asian markets presented a mixed picture. Japan’s Nikkei and Taiwan’s TAIEX hit record highs thanks to surging tech stocks, while South Korea’s KOSPI slipped 1.5% after Monday’s massive rally. Hong Kong’s Hang Seng edged up 0.1%, whereas Chinese blue chips dipped slightly. Meanwhile, Australia’s main index slumped to a one-month low ahead of a key central bank policy decision.

In currency markets, the Pakistani rupee posted a marginal gain against the US dollar, closing at 280.87 — up by Re0.03.

Market activity remained subdued as total volume on the all-share index fell to 899.41 million shares from 949.36 million a day earlier. The overall value of traded shares also dropped to Rs37.31 billion from Rs47.58 billion.

WorldCall Telecom led the volumes with 78.87 million shares, followed by Telecard Limited and K-Electric Ltd with 76.86 million and 71.62 million shares, respectively. Out of 479 companies traded, 133 advanced, 314 declined, and 32 remained unchanged.