The Pakistan Stock Exchange (PSX) experienced a significant decline of 1,199 points on Tuesday, ending a five-day bullish streak.The KSE-100 index fell below the 187,000-point mark as investors engaged in profit-taking following a record-breaking rally.Economic optimism, driven by falling energy prices and anticipated interest rate cuts, had previously pushed the index above 187,000 points.However, the market reversed course, with the index hitting a low of 186,189.21 points before closing at 186,255.55.

Analysts attributed the decline to selling pressure in key sectors like Oil and Gas Exploration, Cement, and Fertiliser, alongside cautious sentiment amid weak regional markets.Heavyweight stocks such as FFC, PPL, UBL, OGDC, and LUCK dragged the benchmark down.Despite the drop, macroeconomic improvements and institutional interest remain supportive of the market.Experts note that inflation is expected to fall into single digits, which could drive further gains.The market's forward P/E ratio of 6.9x suggests attractive valuation levels.