Karachi-(Business Reporter/Web Desk)-The stock market remained under pressure on Tuesday, extending its losses from the previous session, although a late-session recovery helped narrow the decline as investors engaged in selective buying after the recent steep downturn. Sentiment stayed fragile amid rising government bond yields, monetary policy uncertainty, and fresh concerns over US trade tariffs and escalating geopolitical tensions.
The benchmark KSE-100 Index at the Pakistan Stock Exchange closed at 166,258.54 points, registering a decline of 1,432.54 points, or 0.85%, compared to the previous close of 167,691.08.
During the session, the index touched an intraday high of 169,237.51 points, gaining 1,546.43 points (0.92%), before sliding to a low of 163,907.59 points, down 3,783.49 points (2.26%), reflecting heightened volatility.
Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities, said equities came under renewed selling pressure following a spike in government bond yields in last week’s State Bank auction. He noted that tighter monetary policy by the State Bank of Pakistan (SBP), persistent inflationary pressures, and subdued corporate earnings outlook triggered a broad-based selloff.
He further stated that uncertainty surrounding US trade tariffs, ongoing geopolitical conflicts, and ambiguity over the outcome of Pakistan’s IMF third review talks contributed significantly to the bearish trend at the PSX.
Fresh US tariffs on imported goods took effect Tuesday after US President Donald Trump revived parts of his trade agenda in the wake of a Supreme Court ruling that invalidated several of his earlier sweeping duties.
The newly implemented tariffs, initially set at 10%, are positioned as a response to US balance-of-payments concerns. Trump has indicated the possibility of raising them to 15%, while previously imposed sector-specific duties on steel and automobiles remain in place.
The measures are scheduled to remain effective for 150 days unless extended by Congress. Meanwhile, US Customs and Border Protection confirmed it would cease collecting tariffs that were struck down by the court.
In parallel developments, Trump said he would decide within “10 or 15 days” whether to authorise military action against Iran if a nuclear agreement is not reached. According to reports, he has been presented with several military options, including a potential strike targeting Iran’s Supreme Leader, Ali Khamenei.
PSX Slides Sharply as KSE-100 Loses Momentum
The United States and Iran have so far held two rounds of indirect negotiations in Oman and Switzerland, with further talks scheduled later this week in Switzerland. However, significant differences remain between the two sides.
Independent investment and economic analyst AAH Soomro described the day’s movement as a technical rebound following heavy selling in recent sessions. He noted that selective buying by value-focused investors was visible, but added that the broader market direction will largely depend on developments in US-Iran negotiations.
Meanwhile, Pakistan posted a current account surplus of $121 million in January on strong remittances and lower imports, but the cumulative position showed a $1.07 billion deficit in 7MFY26, compared with a $564 million surplus a year earlier, reflecting import normalisation as activity recovers and export growth remains moderate.
Separately, weekly inflation measured by the Sensitive Price Indicator (SPI) increased 1.16% in the week ended February 19, taking the SPI to 335.67 from 331.81; YoY SPI inflation stood at 5.19%, according to the Pakistan Bureau of Statistics (PBS).
On Monday, the KSE-100 plunged 5,478.63 points (3.16%) to close at 167,691.08, after moving between 174,336.86 and 166,886.63.
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