KARACHI: Despite an ongoing global market downturn triggered by Trump’s reciprocal tariffs, the Pakistan Stock Exch­ange (PSX) extended its rally on Friday, initially benefiting from some positive domestic factors.

The PSX reached an all-time high of over 120,796 during intraday trading. However, it ultimately closed in the negative due to late profit-taking.

Topline Securities Ltd said despite pressure in regional and international markets, the benchmark KSE-100 index opened on a positive note and gained to make an intraday high of 1,859, up 1.56 per cent.

The brokerage observed that this optimism could be attributed to the overnight announcement of a reduction in electricity tariffs by 12pc to 17pc for domestic consumers and industries and a statement by the prime minister that the government intends to end circular debt in the energy sector in the next five years.

However, during the closing hours of trade, jittery investors came in to book their profit before the weekend as the index declined to close at 118,791.66, down 146.45 points or 0.12pc day-on-day.

Investor interest was observed in the banking sector as the top positive contribution to the index came from United Bank Ltd, Meezan Bank, MCB Bank, Habib Bank, and Bank Al-Habib Ltd, as they cumulatively contributed 1,020 points to the index.

Conversely, the negative contribution to the index came from Engro Holdings, Oil and Gas Development Company, Hub Power, Mari Energies, and Pakistan Petroleum, wiping out 778 points.

Ahsan Mehanti of Arif Habib Corporation said the PSX came under pressure amid a record fall in global equities on recession fears and Trump tariff worries.

The slump in global crude oil prices, worries over the outcome of the US tariff on Pakistan exports, higher KIBOR and rupee instability were the factors that impacted investor sentiments negatively, leading to a bearish close.

Ali Najib, Head of Sales at Insight Securities, said the banking sector continued to remain a blue-eyed sector as it helped the index to breach an all-time high psychological level of 120,000.

“Institutional buying in anticipation of better than street expectation 1QCY25 result kept the banking stocks in the limelight since the start of trading, he said, adding that the expectation of handsome dividend helped some of the scrips to hit their upper circuit in early trading.

However, in the second session, news regarding the ongoing global tariff war, where the Chinese government announced additional tariffs and restrictions on US goods as a countermeasure to a sweeping tariff imposed by the US president, put some weight on the strong market momentum and ultimately threw the market into the negative territory.

The market witnessed higher investor participation as the trading volume rose 30.98pc to 553.66 million shares while the trad­­ed value increased 25.80pc to Rs35.49bn day-on-day.

Published in Dawn, April 5th, 2025