KARACHI: The Pakistan Stock Exchange (PSX) witnessed another lacklustre session on Tuesday as the State Bank of Pakistan’s overnight surprise decision to keep its policy rate unchanged at 10.5 per cent continued to weigh on investor sentiment, extending losses in the benchmark index.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the KSE-100 index moved largely sideways amid cautious activity and closed at 188,202.86 points, down 384.80 points or 0.2 per cent. He noted that the market lacked a clear direction as investors digested the central bank’s unexpected ‘no-change’ stance announced a day earlier, resulting in subdued participation across most sectors.
Sentiment was also influenced by developments on the policy and legal front. The Constitutional Court upheld Section 4B of the Income Tax Ordinance, reaffirming Parliament’s authority to levy income tax. The ruling partially invalidated earlier high court decisions related to the super tax, creating temporary uncertainty for select corporates.
On the macroeconomic front, attention remained on the SBP’s active role in the foreign exchange market. According to market data, the central bank conducted net foreign exchange interventions of $10.8bn between June 2024 and October 2025, including $1.03bn in October alone, highlighting ongoing efforts to maintain external stability.
Corporate activity was led by Sazgar Engineering Works, which announced its 2QFY26 results. The company posted earnings per share of Rs66.56, reflecting a 67pc year-on-year increase but a 9pc decline on a quarter-on-quarter basis. The result fell short of market expectations of Rs73-78 per share. The company also declared a cash dividend of Rs15 per share.
Engro Holdings, Engro Fertiliser, Hub Power, Lucky Cement and MCB Bank emerged as key laggards, collectively shaving 857 points off the benchmark. These losses were largely offset by gains in Fauji Fertiliser, Meezan Bank, Pakistan Petroleum, Systems Ltd and Bank Alfalah, which together added 952 points.
Market participation weakened further, with total volume falling 13.92pc to 749 million shares and the traded value dipping 7.23pc to Rs53.06bn. K-Electric led the volume chart, with 90.1 million shares traded.
According to Topline Securities, the KSE-100 index oscillated between an intraday high of 189,521 points and a low of 187,538 points.
Published in Dawn, January 28th, 2026
