PSX ends lower as widening trade deficit dampens sentiment

The Pakistan Stock Exchange (PSX) witnessed a volatile session on Tuesday, with the benchmark KSE-100 struggling to hold on to early gains amid renewed macroeconomic concerns. The market opened on a positive note, briefly touching an intraday high of 169,289.20, but momentum stalled as the session progressed. Profitability in the last few hours pushed the index into the red.

By the close, the KSE-100 had slipped to 167,642.28 points, down 419.92 points or 0.25%. The index also hit an intraday low of 167,445.93, reflecting persistent nervousness and reactive trading behavior.

Reading: The PSX sets a positive tone for December with a strong gain of 1,384 points

Investor sentiment weakened further after fresh data showed Pakistan’s trade deficit widened to $2.9 billion in November 2025, a development that weighed heavily on confidence and encouraged investors to lock in profits rather than expand exposure. With pressures from the external sector mounting, market participants remained cautious throughout the day.

In its after-market note, KTrade Securities said the PSX posted second-half gains after a strong recent rally, dragging the index lower by 419 points (-0.25%) to close at 167,642. The pressure came from Fauji Fertiliser, Hub Power, Pakistan Petroleum, Engro Corporation, Systems Limited and Oil & Gas Development Company.

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However, Lucky Cement outperformed, along with National Bank of Pakistan, Bestway Cement and Faysal Bank. Market participation remained steady, with All-Share volumes reaching 722 million. Looking ahead, KTrade noted that sentiment remains constructive, with the upcoming IMF board meeting on December 8 and the expected tranche release likely to guide the direction, while regional geopolitical changes could shape near-term momentum.

Overall, trading volume rose to 775.5 million shares from Monday’s 735.5 million. The value of traded shares stood at Rs 37.4 billion. Shares of 479 companies were traded, of which 182 increased, 254 decreased and 43 remained unchanged. WorldCall Telecom led the volume chart with 169 million shares traded, down Rs 0.04 to close at Rs 1.80.