PSX falls as investors consolidate on inflation surprise

• The KSE-100 closed at 161,281.76 points, down 1,521.39 points.
• The session low was recorded at 161,159.26 points, down 1,643.89 points.
• The index hit an intraday high of 163,384.95, up 1,643.89 points

The stock market fell on Tuesday as investors consolidated positions near the end of earnings season, with a higher-than-expected October inflation print and uncertainty surrounding potential constitutional changes keeping risk appetite in check.

The benchmark Pakistan Stock Exchange (PSX) KSE-100 settled at 161,281.76, down 1,521.39 points, or 0.93%, from its previous close of 162,803.15.

During the session, the index climbed to an intraday high of 163,384.95, gaining 581.8 points, or 0.36%, before retreating to a low of 161,159.26, reflecting a decline of 1,643.89 points, or 1.01%.

“The results season is coming to an end and inflation is higher than expected. This has triggered a period of consolidation,” said Ahfaz Mustafa, Managing Director of Ismail Iqbal Securities.

“We will see market movement depending on the new feed, especially around the 27th Amendment and NFC [National Finance Commission] award,” he added.

Political developments also appeared in the sentiment after Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari said a delegation of the Pakistan Muslim League-Nawaz (PML-N) led by Prime Minister Shehbaz Sharif sought the party’s support for a proposed 27th Constitutional Amendment.

According to details he shared, the package includes a Constitutional Court, reinstatement of executive judges and changes to judicial appointments, alongside proposals regarding the NFC Award, Section 243 and federal control over education and population planning.

Price pressures added to the caution. The core consumer price index (CPI) rose 6.2% year-on-year in October from 5.6% in September, led by food, where perishables rose amid flood damage and border-related disruptions to trade routes.

On Monday, the Pakistan Stock Exchange’s KSE-100 (PSX) gained 0.72% to close at 162,803.15 from 161,631.73, trading between 163,935.03 and 161,892.59 during the session.