The benchmark index dropped by 837.44 points or 0.5%, closing at 166,914.96 points.
Selling pressure was witnessed in key sectors including cement, commercial banks, fertilizers, oil and gas exploration companies, oil marketing companies (OMCs), and refineries. Major stocks such as ARL, Mari, OGDC, POL, PPL, PSO, and Wafi also closed in the negative zone.
In a significant development, the International Monetary Fund (IMF) and Pakistani authorities on Monday considered revising down the GDP growth forecast for the current fiscal year to 3.5%, below the government’s target of 4.2%. This revision follows the damage caused by recent floods to infrastructure, agriculture, and livestock.
Sources told Business Recorder that inflation is expected to rise due to losses from the floods and external factors.
It is worth noting that the PSX closed on Monday with a negative trend. Rising geopolitical tensions with India and profit-taking pressures dampened investor confidence. On Monday, the KSE-100 index had dropped by 1,237.66 points or 0.73% to close at 167,752.41 points.
On the international front, political upheavals in Japan and France continued to dominate currency and bond markets for a second consecutive day on Tuesday. Meanwhile, despite a multi-billion dollar chip supply agreement between AMD and OpenAI, global stock markets remained volatile.
