The Pakistan Stock Exchange (PSX) witnessed another turbulent session on Tuesday as the benchmark KSE-100 index shed 385 points to close at 188,202. Investor sentiment remained cautious following the State Bank of Pakistan’s decision to keep the policy rate unchanged at 10.5 percent.

Trading began on a positive note, with the index climbing in early hours, but optimism quickly faded as selling pressure gripped key sectors. Automobile assemblers, cement, fertiliser, oil and gas exploration, oil marketing companies, power generation, and refinery stocks all faced sustained pressure.

The index swung sharply during the day, hitting an intra-day high of 189,521 before sliding to a low of 187,538. It eventually settled at 188,202, down 0.20 percent. Analysts at KTrade Securities noted that the session remained largely range-bound, reflecting investor caution. Profit-taking emerged in cyclical stocks after the SBP’s rate decision, while subdued institutional participation added to the lack of momentum.

Some relief came from the SBP’s move to lower capital requirements for banks, which lifted sentiment in the financial sector. The ongoing corporate results season also influenced trading patterns, keeping overall direction mixed.

On the contribution front, Fauji Fertiliser led the gains, supported by Meezan Bank, Pakistan Petroleum, Systems Limited, and Bank Al Falah. On the losing side, Engro Holdings, Engro Fertiliser, Hub Power, Lucky Cement, MCB Bank, and Maple Leaf Cement weighed heavily on the index.

Sector-wise, fertilisers, commercial banks, and oil and gas stocks closed higher, while cement, investment banks, and power companies remained under pressure. Looking ahead, KTrade expects futures rollover activity to stay cautious, with geopolitical tensions between Iran and the United States likely to cap any upside in the near term.

Market activity slowed, with trading volume dropping to 749.2 million shares compared to 870.4 million on Monday. Out of 486 companies traded, 160 advanced, 278 declined, and 48 remained unchanged. The value of shares traded stood at Rs53 billion. K-Electric emerged as the volume leader, with 90.2 million shares changing hands, closing at Rs7.04 after gaining Rs0.07.