The Pakistan Stock Exchange (PSX) witnessed a relatively subdued trading session on Tuesday, as market participants adopted a cautious stance in the run-up to the announcement of the fiscal year 2026 (FY26) budget. The benchmark KSE-100 Index posted a modest gain, closing at 118,332.90 after adding 111.78 points or 0.09%.
Investor sentiment appeared tentative, with most traders staying on the sidelines in the absence of any significant market-moving developments. Analysts at Ismail Iqbal Securities noted that a “wait-and-see approach” defined the mood across the trading floor. This conservative behavior followed Monday’s sharp decline, when the index had tumbled by 881.55 points—or 0.74%—in reaction to the delay in the federal budget announcement and ongoing uncertainty surrounding the International Monetary Fund’s (IMF) approval of Pakistan’s circular debt restructuring plan.
Globally, mixed signals from international markets also contributed to the cautious tone. In Asia, most regional indices dipped, mirroring a broader risk-off sentiment. Japan’s Nikkei dropped by 0.15%, while China’s CSI300 blue-chip index slipped by 0.06%. The Shanghai Composite remained mostly flat, and Hong Kong’s Hang Seng Index declined by 0.1%. The MSCI Asia-Pacific index outside Japan also dipped by 0.17%.
However, futures trading in the U.S. showed optimism. Nasdaq futures rose 1.26%, the S&P 500 futures gained 1.11%, and FTSE futures moved up 0.94%. Markets in the U.S. and U.K. were closed on Monday due to holidays, which contributed to low overnight volumes. Investors also found some relief after U.S. President Donald Trump postponed his threat to impose a 50% tariff on European Union imports, extending the deadline to July 9 and calming fears of a near-term trade escalation.
The focus of global investors remains fixed on key economic indicators and corporate earnings in the U.S. This includes Wednesday’s earnings report from Nvidia, where the chipmaker is projected to show a 65.9% increase in first-quarter revenues, driven largely by AI-related demand. Moreover, several scheduled speeches by U.S. Federal Reserve officials and the upcoming U.S. core PCE price index will offer further clues about the Fed’s monetary policy trajectory.
Back home, the Pakistani rupee continued to weaken slightly against the U.S. dollar, losing 0.04% in the interbank market. The rupee closed at 282.17 against the greenback, down by 11 paisas.
Market participation on the PSX showed improvement despite the flat index performance. Total volume on the all-share index rose to 690.39 million shares, up from 635.53 million in the previous session. The value of shares traded surged to Rs23.83 billion, compared to Rs18.58 billion previously.
K-Electric Ltd led the volumes with a remarkable 267.62 million shares changing hands. It was followed by WorldCall Telecom with 31.56 million shares and Pakistan Telecommunication Company Ltd (PTCL) with 20.01 million shares.
A total of 459 companies were traded on Tuesday. Among them, 211 companies closed in the green, 210 recorded a loss, while 38 remained unchanged.
Though Tuesday’s session lacked any dramatic shifts, the market managed to end in positive territory, showing signs of resilience amid domestic policy uncertainty and global market turbulence. Traders and investors now await budget announcements and key policy signals, both locally and globally, which could determine the market’s next direction.