KARACHI: Amid political turmoil following the imposition of governor’s rule and an emergency in PTI-ruled Khyber Pakhtunkhwa, equity investors remained unsettled on Tuesday by the uncertain outlook. Economic concerns persisted despite the finance minister’s optimism that GDP growth would exceed four per cent this fiscal year, even with the oil shock.
The Pakistan Stock Exchange (PSX) continued its downward trend, extending overnight losses as nervous investors offloaded positions. The selling pushed the benchmark KSE-100 index below the key resistance level of 165,000.
Topline Securities Ltd said the index fell 347.97 points, or 0.21 per cent, to close at 164,776.44. The benchmark remained range-bound throughout the session, reflecting cautious investor sentiment and persistent selling pressure on index-heavy stocks.
Investor sentiment is likely to remain cautious amid ongoing market volatility. Near-term market direction will hinge on developments in key economic indicators, institutional activity, and investor positioning. Selective opportunities may arise in fundamentally sound stocks, while a prudent investment approach remains advisable.
Pakistan Telecommunication Company, United Bank, Habib Bank, Lucky Cement and Mari Energies emerged as the major laggards, collectively wiping out 343 points and weighing on overall market performance.
Investor participation improved as trading volume rose 5.72pc to 384 million shares, while traded value dipped 9.67pc to Rs13.1bn.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX recorded a mixed, volatile session, opening higher after yesterday’s sell-off and climbing to an intraday high of 166,071. However, profit-taking at higher levels curtailed the recovery, pushing the benchmark into negative territory and resulting in a lower close.
On the sectoral front, auto sales (cars, LCVs, vans and jeeps) fell 3pc month-on-month and 12pc year-on-year to 15,100 units in September. Nevertheless, cumulative sales in 1QFY27 rose 19pc to 50,500 units.
Analysts expect the market to remain volatile amid domestic political uncertainty. Selective value buying may offset further downside risks. Investors should remain cautious, prioritise fundamentally strong stocks, and avoid aggressive positions until sentiment stabilises.
Published in Dawn, October 14th, 2026
