Overview
- Earlier this week the bourse recorded a strong weekly rally that lifted the KSE-100 to about 178,922.75, driven by easing US–Iran tensions, lower oil and investor‑friendly FY27 budget measures.
- On Tuesday selling intensified as investors booked profits and completed year‑end rollovers, pulling the KSE-100 down roughly 778 points to about 177,693 by the close.
- Supportive macro signals that underpinned the rally included the SBP holding its policy rate at 11.5 percent, a May current account surplus and a large PIB auction that drew strong demand and pushed yields lower.
- Market liquidity and capitalization surged during the buying wave but trading volumes and values softened as the pullback took hold and participation narrowed to selective names.
- Traders now say the short‑term outlook is headline‑sensitive with market direction to depend on timely implementation of FY27 measures, further geopolitical developments and upcoming policy dates while the exchange pauses for Ashura holidays.