PSX ends flat as profit-taking offsets early gains

KARACHI: The Pakistan Stock Exchange (PSX) KSE-100 Index closed almost flat on Tuesday, shedding just 3 points to settle at 156,177 after a volatile session marked by profit-taking and economic concerns.

The benchmark touched an intraday high of 157,197 and a low of 155,960. Positive contributions from SYS, LUCK, and BOP added 322 points, but losses in HUBC, MEBL, OGDC, PPL, and UBL wiped out most of the gains, collectively pulling the index down by 278 points.

Trading activity remained robust, with volume surging to 1,498 million shares and turnover recorded at Rs48.8 billion.

Market participants noted heavy selling in exploration and power generation stocks, while rising margin trading costs and inflationary pressures from flood-related disruptions weighed on sentiment.

According to Al Habib Capital, profit-taking in key heavyweights and macroeconomic risks kept investors cautious. JS Global reported that the bourse opened strong and briefly crossed the 157,000 mark but failed to sustain momentum as selling pressure erased earlier gains.

On the macro front, the Public Sector Development Programme (PSDP) has shrunk from 2.6 per cent of GDP in 2018 to just 0.8 per cent in 2025, intensifying pressure on economic growth and job creation.

Meanwhile, the federal government is weighing a plan to introduce a mini-budget aimed at raising funds for flood rehabilitation, which could include new levies on luxury goods, cigarettes, cars, and electronic items, according to official sources.

The plan, currently under discussion, seeks to impose additional taxes on over 1,100 imported items through a federal levy. It is expected to target high-end products mostly consumed by wealthy individuals. If approved by Prime Minister Shehbaz Sharif, the move would help bridge a widening revenue shortfall while generating resources for flood-hit areas.