The Pakistan Stock Exchange (PSX) extended its downturn on Tuesday, with the benchmark KSE‑100 index falling 1,303.52 points to settle at 173,150.42, as persistent foreign corporate selling exacerbated bearish sentiment across key sectors.

After opening higher and briefly reaching 176,131.35, early gains were short‑lived as investors booked profits and reversed course. A modest midday rebound failed to sustain momentum, and renewed selling in the final hour dragged the index toward an intra‑day low of 171,693.40 before the close.

Market breadth remained weak, with declines evident in heavyweight sectors such as autos, banking, cement, oil and gas exploration, OMCs, and power generation. Analysts said persistent foreign corporate selling and a fragile investor outlook continued to weigh on sentiment, mirroring volatility seen in recent sessions.

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On Monday, the bourse experienced a broad‑based sell‑off that saw the KSE‑100 plunge sharply amid institutional liquidation and weak corporate results, highlighting ongoing market fragility.

Topline Securities noted that extended offloading in blue‑chip names kept upward momentum in check.

Pakistan State Oil (PSO), Habib Bank, Engro Holdings, United Bank, Fauji Fertiliser, and National Bank collectively eroded 892 points from the benchmark, while Oil & Gas Development Company, Pakistan Petroleum, Millat Tractors, and Bank of Punjab provided limited support, adding 359 points.

In corporate earnings news, PSO posted an unconsolidated profit of Rs2.7 billion in 2QFY26, with an earnings per share (EPS) of Rs5.82, below industry expectations due to inventory losses and a higher effective tax rate, according to Topline Securities.

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Overall trading activity declined as volumes fell to 716 million shares from Monday’s 773.2 million, with the total traded value at Rs40.4 billion. Of the 477 companies traded, 128 advanced, 293 declined and 56 ended unchanged. K‑Electric topped the volume chart with 122.6 million shares, closing at Rs7.82, down Rs0.31.

Investors will be watching macroeconomic cues and corporate results closely after recent volatility, as the market absorbed both external selling and domestic pressures that have kept confidence tentative.