Persistent foreign corporate selling fueled the decline across major sectors. The market started the day on a positive note, reaching 176,131, but early gains vanished quickly as investors booked profits. A small midday rebound failed, and renewed selling pushed the index to an intra-day low of 171,693 before closing.

Market weakness was widespread, with heavy losses in autos, banking, cement, oil and gas exploration, OMCs, and power sectors. Analysts said that continued foreign selling and cautious investor sentiment kept the market under pressure.

Monday had already seen a broad sell-off, with institutional liquidations and weak corporate results highlighting ongoing fragility in the PSX. Topline Securities noted that heavy selling in blue-chip stocks prevented any strong upward momentum.

Major stocks like Pakistan State Oil (PSO), Habib Bank, Engro Holdings, United Bank, Fauji Fertiliser, and National Bank dragged the index down by 892 points. Only a few companies, including Oil & Gas Development Company, Pakistan Petroleum, Millat Tractors, and Bank of Punjab, offered limited support, adding 359 points.

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In corporate news, PSO reported an unconsolidated profit of Rs2,700,000,000 in 2QFY26 with earnings per share of Rs5.82. The result fell short of expectations due to inventory losses and a higher effective tax rate, according to Topline Securities.

Overall trading was lower, with volumes declining to 716 million shares from Monday’s 773.2 million. The total traded value was Rs40,400,000,000. Out of 477 companies traded, 128 gained, 293 declined, and 56 remained unchanged. K‑Electric led the volume chart with 122.6 million shares, closing at Rs7.82, down Rs0.31.

The PSX continues to struggle with foreign selling and profit-taking. Blue-chip stocks are especially under pressure, keeping the market volatile. Investors remain cautious as corporate results disappoint and trading volumes shrink.