The Pakistan Stock Exchange (PSX) endured a topsy-turvy session on Tuesday, with the benchmark KSE-100 index reversing sharp early gains to close more than 1,100 points lower as broad-based profit-taking swept through heavyweight sectors against a backdrop of cautious global sentiment.

After climbing to an intraday high of 178,768.83 points, the benchmark index steadily lost ground as broad-based selling intensified across commercial banks, oil and gas exploration companies, cement, investment companies and fertiliser stocks. The index eventually settled at 177,083.22, down 1,116.80 points, or 0.63%, after touching an intraday low of 177,043.10.

The reversal came as investors adopted a cautious stance amid mixed signals from overseas markets. Asian equities struggled for direction as markets weighed strong US corporate earnings against lingering geopolitical uncertainty, while oil prices rose more than 2% as a diplomatic resolution to the US-Iran conflict remained uncertain, while disruptions to oil flows through key shipping routes persisted.

The benchmark index's journey from a strong morning rally to a weak finish underscored the session's volatile tone, with profit-taking gathering pace through the afternoon. 

Read: PSX jumps over 2,100 points on lower oil prices, global optimism

Ahmed Sheraz, equity trader at KTrade Securities, commented that the KSE-100 index closed at 177,083 points, down 1,116 points, or 0.63%, as the market remained under pressure throughout the session amid the absence of fresh positive triggers to sustain recent gains. 

Broad-based selling in commercial banks, oil and gas, cement, investment companies and fertiliser stocks led the decline. Investors largely stayed on the sidelines despite Brent crude trading in the $84-86 per barrel range, awaiting fresh economic and corporate catalysts. Looking ahead, Sheraz predicted that the market is likely to remain news-driven, with corporate earnings, macroeconomic developments and foreign fund flows expected to guide investor sentiment, while the 176,500-177,000 range remains a key support zone for the benchmark.

Overall, trading volume decreased to 711.2million shares from Monday’s close of 785.3million. The value of traded shares stood at Rs25.8billion.
Shares of 495 companies were traded. Of these, 161 stocks closed high, 295 fell, and 39 remained unchanged. Pakistan International Bulk Terminal was the volume topper with trading in 89.8million shares, losing Rs0.34 to close at Rs16.74.