PSX Turns Volatile as KSE-100 Index Drops 665 Points Amid Profit-Taking
The Pakistan Stock Exchange (PSX) witnessed a highly volatile trading session on Tuesday, as early optimism gave way to selling pressure, dragging the benchmark KSE-100 Index into negative territory. The index initially surged by over 900 points during the morning session on the back of strong buying interest, but the momentum proved short-lived as investors resorted to profit-taking.
As trading progressed, the market reversed gains, with the KSE-100 Index falling by 665.56 points to hover at 169,840.75 by 2:12pm. According to PSX data, total trading volume reached 284,031,410 shares, with a traded value of Rs12.02 billion, reflecting active participation despite the downturn.
Market analysts attributed the volatility to a combination of global geopolitical tensions and economic uncertainty, which continue to weigh on investor sentiment. The cautious mood on the trading floor led investors to lock in gains, pushing the index into the red zone after a strong start.
The bearish trend follows Monday’s session, when the PSX also came under pressure due to uncertainty surrounding potential US-Iran negotiations. The KSE-100 Index had declined by 610 points, closing at 170,506.31 after a volatile session marked by sharp intraday swings.
Trading on Monday began on a negative note, with the index dropping 1,433.57 points (0.84%) within minutes of opening, hitting 169,682.25 at 9:34am. Selling pressure was observed across key sectors, including cement, commercial banks, oil and gas exploration, oil marketing companies, and power generation, which kept the market subdued during early hours.
Although the market briefly recovered around midday on the back of value buying and improved sentiment, the gains were not sustained. Renewed selling in heavyweight sectors erased the recovery, leading the index to close in negative territory.
An analyst at Arif Habib Limited, Ali Najib, noted that the market remained range-bound, with momentum staying subdued due to geopolitical concerns. He added that aggressive rhetoric between US and Iranian officials has heightened fears of further escalation, keeping investors cautious.
Overall, the PSX continues to reflect uncertainty as investors remain sensitive to both domestic economic indicators and global developments, resulting in ongoing market volatility.