Pakistan stocks slip into red as market remains volatile amid consolidation

KARACHI: The Pakistan Stock Market remained volatile during Tuesday’s session, reflecting a day of consolidation.

The benchmark KSE-100 index recorded an intraday high of 211 points and a low of 1,163 points, eventually closing at 118,971 — down 719 points, or 0.60 per cent. The decline was attributed to persistent profit-taking, compounded by the absence of any positive triggers, according to Topline Securities.

Key heavyweights — including FFC, UBL, HBL, PPL, and ENGRO — collectively contributed to a 386-point decline in the index.

“The benchmark index ended the day in the red, as investors traded cautiously ahead of the upcoming budget announcement. With most developments already factored in, market sentiment remained subdued, awaiting fresh cues that could shift the momentum,” stated Ismail Iqbal Securities.

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“Stocks closed lower amid pre-budget uncertainty and concerns over parliamentary approval of IMF-driven proposed tax measures in the federal budget for FY26. These include the phasing out of industrial incentives and the implementation of tax reforms for the agricultural sector,” said Ahsan Mehanti, CEO of Arif Habib Commodities.

He added that an IMF warning over external risks — such as US tariff policies and escalating tensions with India — also dampened sentiment. Additionally, falling global crude oil prices and rupee instability played a catalytic role in the bearish close.

Overall market activity weakened, with total traded volume dropping to 436 million shares and traded value declining to PKR 20.7 billion. PREMA led the volume chart, with 39 million shares changing hands during the session.

In the previous session, the market also witnessed a consolidation phase as the index hovered near its all-time high. It moved within a wide range, recording an intraday high of 636 points and a low of 398 points, before closing at 119,689 — up 40.49 points, or 0.03 per cent.

The steady upward bias was supported by investor optimism following the release of a detailed IMF report, which offered a clearer picture of the country’s macroeconomic trajectory and policy direction.