KARACHI: Despite the extension of the overnight bullish spell, the Pakistan Stock Exchange (PSX) came in for late profit-taking, trimming early gains, but managed to close in the green on Tuesday.
Topline Securities Ltd said the PSX extended overnight bullish momentum at the open, with the benchmark KSE-100 index surging to an intraday high of 2,442 points at 178,370.46, as investors initially cheered the positive sentiment. However, the strong start proved short-lived, as participants opted to lock in gains at elevated levels, triggering broad-based profit-taking in the latter half of the session.
Consequently, the KSE-100 index gave up most of its intraday gains and closed at 176,133.57, recording a modest 205-point or 0.12 per cent increase. The subdued close reflected cautious investor sentiment amid lingering geopolitical tensions and persistent uncertainty in global energy markets, prompting market participants to remain selective despite early optimism.
On the sectoral front, refinery stocks bore the brunt of the selling pressure amid market speculation that the long-awaited refinery policy could face further delays. Overall, investor sentiment remained guarded as market participants continued to assess geopolitical developments and their potential implications for global oil prices, inflation, and foreign investment flows.
On the index contribution front, United Bank, Engro Holdings, Meezan Bank, Lucky Cement, and MCB Bank were the top positive contributors, collectively adding approximately 258 points to the benchmark index. Conversely, Oil and Gas Development Company, Faunji Fertiliser, Maple Leaf Cement Factory, Cnergyico PK, and DG Khan Cement weighed on the market, collectively eroding around 178 points from the index.
Market activity remained healthy, with total traded volume surging 48.46pc to 1.003 billion shares and traded value rising 17.95pc to Rs35.7 billion. Cnergyico PK led the volume chart, with nearly 263 million shares changing hands.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX entered a consolidation phase amid a possible 10-day ceasefire between the US and Iran. Following the intense exchange of strikes over the weekend, signs of backchannel diplomacy eased concerns and improved investor sentiment.
However, gains were capped as rumours of a Pakistan-IMF deadlock over the Rs1.7tr gas circular debt, with discussions deferred to September, and potential delays to the Refinery Policy due to IMF-related uncertainty and limited financing appetite from local banks weighed on market sentiment, leading the index to surrender most of its early gains.
Analysts expect the market to remain sensitive to developments on the geopolitical front and to progress on IMF-related matters. Further signs of de-escalation could support investor confidence, while delays in IMF-related reforms may keep sentiment cautious. Meanwhile, attractive valuations and ongoing corporate earnings may continue to offer selective buying opportunities.
Published in Dawn, July 22nd, 2026
