KARACHI: The Pakis­tan Stock Exchange (PSX) came under pressure on Tuesday, with the benchmark KSE-100 index snapping its upward streak as investors opted for profit-taking amid mounting concerns over sweeping taxation measures and a nationwide strike call by trade and industry on July 19.

The session opened on a positive note, driven by continued bullish sentiment from the previous day, as heavyweight banking stocks led early gains. According to Topline Securities Ltd, the index surged to an intraday high of 1,245 points before sentiment turned sour in the second half.

Selling pressure intensified as investors sought to lock in gains, triggering a broad-based sell-off. The index swung sharply during the session, touching an intraday low of 676 points before settling at 135,939.87 — down by 562.67 points or 0.41pc. The day’s movement reflected a tug-of-war between optimism and caution.

United Bank Ltd, Fauji Fertiliser Company, Allied Bank Ltd, Pakistan Services Ltd, and Engro Holdings were among the top contributors, adding a combined 564 points to the index. However, losses in Meezan Bank Ltd, Pakistan Petroleum Ltd, Hub Power Company, and Oil and Gas Development Company pulled the index down by 350 points.

Ahsan Mehanti of Arif Habib Corporation stated that the market closed lower due to institutional profit-taking in overbought stocks, foreign outflows, and concerns over high corporate taxation and the expanded powers granted to FBR officials. He added that rupee volatility and fears that tax waivers on sugar imports could breach the $7bn IMF bailout conditions also weighed on investor sentiment.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, described the session as one of consolidation. “Early optimism driven by yesterday’s rally quickly faded as profit-taking at peak levels reversed momentum,” he noted.

Market watchers identified the 135,000 level as initial support, bolstered by strong corporate earnings and foreign inflows. If breached, the next key support lies at 132,000, where attractive valuations and prospects of monetary easing could revive interest.

Trading activity remained strong, with volume rising by 4.47pc to 879.11 million shares, while traded value increased by 4.20pc to Rs38.60bn. Bank of Punjab led the volume chart with 61.3 million shares changing hands.

Published in Dawn, July 16th, 2025