The Pakistan Stock Exchange (PSX) extended its losses on Tuesday as investors remained cautious amid domestic political uncertainty and concerns over the economic outlook.

The benchmark KSE-100 index fell below 165,000 after selling pressure persisted throughout the session. The decline came despite the finance minister’s optimism that Pakistan’s GDP growth would exceed 4% in the current fiscal year, even amid higher oil prices.

According to Topline Securities Ltd, the KSE-100 dropped 347.97 points, or 0.21%, to close at 164,776.44.

The index opened higher following the previous session’s sell-off and climbed to an intraday high of 166,071. However, profit-taking at higher levels erased the gains and pushed the benchmark into negative territory.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, described the session as mixed and volatile, with investors selling shares after the initial recovery.

Major Stocks Drag Market Lower

Pakistan Telecommunication Company, United Bank, Habib Bank, Lucky Cement and Mari Energies led the decline. Together, the five stocks shaved 343 points off the benchmark index, according to the report.

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Trading activity presented a mixed picture. Share volume increased 5.72% to 384 million shares, while the total value of traded shares fell 9.67% to Rs13.1 billion.

The contrasting figures indicated higher trading volume despite a decline in the overall value of transactions.

Auto Sales Decline in September

Automobile sales also featured among the market’s economic indicators. Sales of cars, light commercial vehicles, vans and jeeps fell 3% month-on-month and 12% year-on-year to 15,100 units in September.

However, cumulative sales during the first quarter of fiscal year 2026-27 increased 19% to 50,500 units.

The quarterly increase provided a positive contrast to September’s monthly and annual declines.

Political and Economic Developments in Focus

Investors continued to monitor domestic political developments and broader economic conditions. Concerns over the political situation in Khyber Pakhtunkhwa, alongside uncertainty surrounding energy costs and economic growth, contributed to the cautious market environment described in the report.

The finance minister’s growth outlook offered a positive signal, but investors remained focused on economic indicators, institutional activity and trading trends.

Market participants may continue to assess individual stocks on their fundamentals as they respond to changing economic and political conditions. The direction of the benchmark will depend on how these factors develop in the coming sessions.