PSX ends bull run, closes lower on profit-taking, ADB tax warning

KARACHI: After a bullish streak in the previous session that drove the market to record highs, the Pakistan Stock Exchange (PSX) closed in the red on Tuesday amid profit-taking.

The trading session began on a strong note, extending Monday’s upward momentum as banking heavyweights led the rally. Early optimism pushed the benchmark KSE-100 Index up by as much as 1,245 points during intraday trading.

However, the rally lost steam in the second half, as investors shifted focus to profit-booking, triggering a broad-based sell-off. The index swung widely, hitting a low of 676 points before settling at 135,393 — down 562 points, or 0.41 per cent. The session reflected a tug-of-war between bullish sentiment and cautious gain-taking, Topline Securities noted.

Al Habib Capital Markets cited multiple factors weighing on investor confidence, including the Asian Development Bank’s (ADB) proposal to impose a 5 per cent GST on digital transactions, rising petroleum prices, and mounting pressure on the Pakistani rupee against the US dollar — all of which are expected to stoke inflationary concerns.

On the leaderboard, UBL, FFC, ABL, PSEL, and ENGROH emerged as top gainers, collectively contributing 564 points to the index. In contrast, MEBL, PPL, HUBC, and OGDC exerted downward pressure, shaving off 350 points.

Investor participation remained healthy, with volumes reaching 877 million shares and turnover recorded at Rs38.57 billion. The Bank of Punjab (BOP) led the volume chart with 61.3 million shares traded, underscoring the market’s robust liquidity and momentum.