The Pakistan Stock Exchange (PSX) faced a sharp decline as late selling pressure wiped out earlier gains in the trading session. The KSE-100 index initially showed strong momentum, reaching an intra-day high, but ultimately closed lower due to concerns over the IMF review and economic uncertainty during Ramazan. Sectors such as automobile assemblers, cement, chemical, commercial banks, oil, gas exploration, power generation, and refineries saw mixed activity, with some showing resilience while others struggled. Asian markets and global crude prices added to the instability, as fears of foreign outflows and a weak rupee further dampened investor sentiment. Analysts pointed to CPI inflation, the impact of Donald Trump’s tariff war, and an overall bearish close as key drivers of the downturn.

Leading brokerage firms, including Topline Securities and Arif Habib Limited (AHL), noted that the benchmark index was caught in a range-bound movement, with a significant drop in shares traded. Major players such as Engro Holdings, Tariq Glass Industries, Lucky Cement, Pakistan International Bulk Terminal, and Nestle influenced the fluctuations, while Fauji Fertiliser, Engro Fertilisers, and Pakistan State Oil dragged the market down. The market closed at Rs13.7 billion in trade value, with 431 companies active and 264 million stocks changing hands. Despite a rally earlier in the day, firms like JS Global and KTrade Securities expect a turnaround once confidence is restored. The potential trigger remains news from the IMF review, which could provide fresh funding and improve valuations for cyclical and production sectors. NCCPL reported foreign investors sold Rs32.2 million worth of shares, signaling continued caution in the market.