ISLAMABAD: The Pakistan Stock Exchange (PSX) extended its losses on Tuesday, though a late-session rebound trimmed some declines as value investors stepped in following Monday’s sharp sell-off. Rising government bond yields, policy uncertainty, fresh US tariff measures, and escalating geopolitical tensions weighed on market sentiment.
The KSE-100 Index settled at 166,258.54 points, down 1,432.54 points (0.85%) from Monday’s close of 167,691.08. During the session, the index hit an intraday high of 169,237.51 points (+0.92%) and a low of 163,907.59 points (-2.26%).“Stocks witnessed selling after a surge in government bond yields in the SBP auction last week. Policy tightening amid rising inflation and weak earnings projections led to a massive sell-off,” said Ahsan Mehanti, MD and CEO of Arif Habib Commodities.
He added that US trade tariff uncertainty, geopolitical crises, and IMF review talks acted as catalysts for bearish activity.
Fresh US tariffs on imported goods came into effect on Tuesday, following a Supreme Court ruling that struck down several of President Donald Trump’s broad duties. The new tariffs, initially set at 10 percent, could increase to 15 percent, while sector-specific duties on steel and autos remain. These tariffs are slated to last 150 days unless extended by Congress.
In parallel, Trump indicated he may decide within “10 or 15 days” whether to take military action against Iran if no nuclear deal is reached. Indirect talks between the US and Iran in Oman and Switzerland are set to resume Thursday, though positions remain unresolved.“Monday’s sell-off led to a relief bounce. Selective buying is seen by value hunters, but the broader market direction depends on the outcome of US-Iran talks,” said AAH Soomro, an independent investment and economic analyst.
On the domestic front, Pakistan posted a current account surplus of $121 million in January due to strong remittances and lower imports. However, the cumulative 7MFY26 deficit stood at $1.07 billion, compared with a $564 million surplus a year earlier.
Meanwhile, weekly inflation measured by the Sensitive Price Indicator (SPI) rose 1.16 percent, taking SPI to 335.67, with YoY SPI inflation at 5.19 percent, according to the Pakistan Bureau of Statistics (PBS). The previous session saw the KSE-100 plummet 5,478.63 points (3.16%) to close at 167,691.08, after trading between 174,336.86 and 166,886.63.
