KARACHI: The Pakis­tan Stock Exchange (PSX) witnessed cautious trading on Tuesday, as investors remained alert ahead of the bidding process for the national flag carrier, Pakistan International Airlines (PIA). The market extended its overnight volatility, closing in the red after sharp intraday fluctuations.

According to Topline Securities Ltd, the session was choppy and range-bound, with rollover-week adjustments contributing to a cautious market sentiment. The benchmark KSE-100 index fluctuated between a high of 663 points and a low of 235 points, eventually closing at 171,073.73, down 130.45 points or 0.08 per cent.

Market activity was selective, with position reshuffling limiting any significant upward movement. Investors remained focused on the government’s move to offload a major liability — PIA — a development that is being closely monitored for its potential impact on both the broader fiscal landscape and market dynamics.

On the contribution front, Habib Bank, Kohat Cement, United Bank, PTCL, and Dolmen City REIT collectively added 324 points to the index, while Engro Holdings, Fauji Fertiliser, Systems Ltd, and Lucky Cement contributed a combined loss of 308 points, keeping the market in negative territory.

Market participation remained subdued, with the total volume dipping 5.02pc to 648 million shares and the total traded value falling 6.12pc to Rs28.23 billion.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that the index closed nearly flat. He attributed the weak sentiment to the roll-over week, a period typically marked by uncertainty.

Sector-wise, weekly oil and gas reserve data showed a decline in production, with oil output falling 3.1pc week-on-week to 63,556 barrels per day, while gas production dropped 7.7pc to 2,692 mmcfd due to lower output from key fields.

Looking ahead, analysts expect subdued volumes and routine selling pressure to persist through the roll-over week, maintaining a cautious near-term market outlook.

The 170,000-point level is seen as a key support for sustaining the current bullish momentum; a break below this threshold could signal a fresh phase of consolidation.

Published in Dawn, December 24th, 2025