The Pakistan Stock Exchange (PSX) turned volatile on Tuesday, with the benchmark KSE-100 Index surrendering early gains and falling by more than 600 points as investor sentiment weakened amid persistent uncertainty over the Middle East and profit-taking across key sectors.
The market opened on a positive note, with the KSE-100 Index gaining more than 500 points in early trade. However, the rally proved short-lived as selling pressure intensified, dragging the index into negative territory.
During intraday trading, the benchmark index dropped to 177,553.48, down 646 points from the previous close. By 2:00 pm, the KSE-100 was trading at 177,701.97, showing a decline of 498.05 points (0.28%).
Selling was witnessed across several heavyweight sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, refineries, and power generation stocks, contributing to the market’s downward momentum.
The decline followed Monday’s strong rally, when the KSE-100 Index surged 2,105.91 points (1.20%) to close at 178,200.02. Investor confidence had improved after Pakistan’s annual inflation eased to 9.2% in July 2026, returning to single digits, while easing geopolitical tensions and a sharp fall in global oil prices further supported the market.
Globally, Asian stock markets traded cautiously higher as investors monitored developments in the Middle East. Oil prices also recovered slightly after sharp losses in the previous session. Brent crude rose about 1.2% to $84.79 per barrel, while US West Texas Intermediate (WTI) crude gained 0.6% to $80.80 per barrel.
Market participants continue to closely watch geopolitical developments involving the United States and Iran, as any escalation could impact global energy markets and influence investor sentiment in emerging markets, including Pakistan.
