Bearish Sentiment Grips PSX as investor profits reports

• The KSE-100 index falls sharply, closing at 112,030.36 points.
• The reference index drops 1,489.96, -1.31%.
• The market strikes an intra -business low of 111,434.95 points, losing momentum.

The Bearish Sentiment continued on the Stock Exchange on Tuesday, with investors closely monitoring corporate profits and the recent monetary policy announcement.

The Pakistani Stock Exchange (PSX) reference index closed at 112,030.36, recording a sharp drop in 1,489.96 points or -1.31% from the closure of the previous session of 113,520.32. During the meeting, the index climbed to an intraodam high of 113,644.71 but also reached a low 111,434.95.

“The profit period has begun and stocks are reacting to profits and payments. Frustration for payments has kept oil under pressure yesterday and caused wider market weakness,” said Iqbal Securities Ahfaz Mustafa.

“This pressure has continued today as people have been careful before the announcements of profits,” he added.

The oil sector has faced significant pressure after Monday’s derogatory profit reports, which weigh in the broader market feeling.

On Monday, Mari Energies Limited (Mari) reported a 19% decrease annually for profitability for H1FY25, publishing RS30.396 million (EPS: RS25.32), compared to RS37.505 million (EPS: Rs31.24) in H1FY24.

The company’s quarterly profit also declined by 39% on an annual basis to RS11,168 million (EPS: Rs9.30), led by an increase in operating costs of 115% on an annual basis and a 15% growth right to lease value Mari D&P, from November 2024.

One day earlier, Pakistan’s state bank (SBP) announced a 100 -base reduction in its key policy rate, lowering it to 12%. This marks the sixth consecutive reduction in interest rates since June 2024, as the country aims to revitalize economic activity and the feeling of business in the midst of inflation of relaxation.

Governor SBP Jameel Ahmed noted that inflation is expected to decline further in January, although basic inflation remains increased. The Central Bank provided full -year inflation in average between 5.5% and 7.5% for the use ended in June 2025.

In an effort to protect consumers from increasing gas invoices, the government rearranges 82 billion Rs from the profits of state -owned Sui Gas companies. These funds, originally intended to reduce circular debt, will now be used to prevent the increase in gas invoices for ordinary consumers.

“We had allocated 100 billion Rs from companies’ profits to cut circular debt,” said Musadik Malik oil minister. “Now, the 82 billion Rs will be used to ensure that ordinary consumers are not charged with higher utility costs.”

The market started in a negative note a week, with the KSE-100 index sinking 1,360.16 points, or 1.18%, closing at 113,520.32.

The index presented a high 115,596.87 and low 113,482.23 during the meeting, led by weak corporate results and a cautious feeling ahead of the monetary policy announcement.

As the profit period continues, market participants are expected to remain focused on corporate results and payment expectations.