KARACHI: After a robust overnight rally, the Pakistan Stock Exchange (PSX) on Tuesday failed to sustain the momentum despite some progress on the peace deal between the US and Iran, as a section of investors resorted to profit-taking, forcing the benchmark KSE-100 index to close the session in the red despite a positive opening.
Topline Securities Ltd said the PSX experienced a highly volatile trading session, with the index giving up early gains amid broad-based profit-taking. After opening higher, investor sentiment weakened in the latter half of the session as selling pressure intensified across major sectors, erasing intraday gains.
The index settled at 177,083, down 1,116 points or 0.63 per cent. During the session, the index traded in a volatile range, touching an intraday high of 178,768 and a low of 177,043.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the early gains were wiped out in the latter half as investors booked profits ahead of the close, leaving the market in negative territory.
On the macro front, the government reduced petrol and diesel prices by Rs4.08 and Rs2.45 per litre, respectively, after ex-refinery prices fell.
On the corporate front, Habib Bank reported a record 2QCY26 after tax profit of Rs18.4bn (earnings per share: Rs12.51), up 3pc year-on-year and 14pc quarter-on-quarter, taking 1HCY26 earnings to Rs34.4bn (EPS: Rs23.5), broadly flat year-on-year.
The bank also announced a cash dividend of Rs6 per share, bringing the cumulative 1HCY26 payout to Rs12 per share.
United Bank, Lucky Cement, Engro Holdings, Oil and Gas Development Company, and Pakistan Petroleum emerged as the largest drags on the benchmark, collectively eroding approximately 580 points.
Market participation weakened as trading volume fell 9.43pc to 711.2 million shares and turnover value tumbled 21.92pc to Rs25.87 billion.
Analysts expect the market to stay mostly range-bound to positive as investors evaluate ongoing corporate earnings reports and macroeconomic trends.
Declining fuel prices and easing inflation support optimism, though short-term profit-taking near highs may persist.
Published in Dawn, August 5th, 2026
