PTBP Web Desk
Selling pressure returned to the PSX KSE-100 Index on Tuesday after a brief positive start, as the benchmark index tumbled more than 2,500 points during intra-day trading.
By 2:35pm, the KSE-100 Index was hovering at 171,936.96, down 2,516.97 points or 1.44%. The decline followed a sharp sell-off on Monday, reflecting continued weakness in investor sentiment at the Pakistan Stock Exchange (PSX).
Broad-Based Selling Across Key Sectors
The market downturn was driven by heavy selling in major sectors. These included automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation firms, and refineries.
Index-heavy stocks were among the worst hit. Shares of HUBCO, Attock Refinery Limited (ARL), Oil and Gas Development Company (OGDC), Pakistan Oilfields Limited (POL), Habib Bank Limited (HBL), Meezan Bank Limited (MEBL), and National Bank of Pakistan (NBP) all traded in the red.
The continued pressure suggests that investors remain cautious after Monday’s steep fall. On Monday, the benchmark index plunged 5,149.79 points, or 2.87%, closing at 174,453.94 points. The massive drop wiped out significant market capitalization and intensified risk aversion.
Nepra Decision on Prosumers
In a related development, the National Electric Power Regulatory Authority (Nepra) announced protection for existing prosumers under their current seven-year contracts with distribution companies (Discos) and K-Electric.
The move follows communication from the Power Division and amendments to the Prosumer Regulations 2026. Under the revised framework, existing prosumers will retain the benefits of their contracts until expiry.
Although the decision provides clarity for the energy sector, it did not significantly lift broader market sentiment during Tuesday’s session.
Global Markets Show Mixed Trends
International markets presented a cautious picture. Asian financial markets traded carefully in holiday-thinned sessions.
Several major markets, including Mainland China, Hong Kong, Singapore, Taiwan, and South Korea, were closed for Lunar New Year holidays. Meanwhile, US markets remained shut on Monday due to Presidents’ Day.
In Japan, the Nikkei index slipped 0.5%, while the broader Topix declined 0.2% to 3,779.29. Conversely, Australia’s S&P/ASX200 gained nearly 0.5%.
Bond markets showed a softer trend. Ten-year US Treasury yields edged down by 1 basis point to 4.044%, marking the lowest level since early December. Japan’s five-year yield also fell 2 basis points to 1.65%, its lowest since February 2.
In early Asian trading, Nasdaq futures dipped 0.1%, while S&P 500 futures rose 0.2%.
Oil prices moved higher amid expectations surrounding US-Iran nuclear negotiations in Geneva. Rising oil prices often influence energy stocks globally, though local market sentiment remained subdued.
Investor Sentiment Remains Fragile
The sharp decline in the PSX KSE-100 Index reflects heightened risk aversion and uncertainty among investors. Market participants appear cautious amid both domestic economic concerns and global market signals.
Moreover, continued selling in banking and energy stocks indicates a defensive trading pattern. Investors are closely monitoring macroeconomic indicators, regulatory developments, and global financial trends.
In conclusion, the Pakistan Stock Exchange remains under pressure following consecutive sessions of heavy losses. While selective developments such as Nepra’s prosumer protection offer some sectoral relief, broader market recovery may depend on improved investor confidence and stabilization in global markets.
