KARACHI: With the enforcement of US tariffs and retaliatory measures by rivals, the Pakistan Stock Exchange (PSX) resumed its downward trend amid the escalation of the global tariff war, as China and the EU announced counter-tariffs.
Topline Securities Ltd said the PSX remained under pressure on mounting uncertainty over potential US tariff measures reverberated across global financial markets. In line with the negative trend witnessed in international equities, the local bourse experienced heightened volatility throughout the session.
The benchmark KSE-100 index experienced significant intraday pressure, plunging by 2,640 points. Although some recovery was seen in the mid-session, the index ultimately settled at 114,153 points, losing 1,379 points or 1.19 per cent day-on-day.
The major drag on the index came from United Bank Ltd, Engro Corporation, Oil and Gas Development Company, Pakistan Petroleum Ltd, and Systems Ltd, which collectively wiped out 639 points.
Ahsan Mehanti of Arif Habib Corporation said the PSX fell sharply lower amid a rout in global equities and a slump in the crude oil prices, which reflected an intensifying global trade war.
He added that the weak rupee and uncertainty over the outcome of US tariff levies on Pakistan exports turned sentiments bearish.
Ali Najib, Head of Sales at Insight Securities, said the overnight mild recovery proved a dead cat’s bounce as the market resumed its downturn, reinforcing the underlying bearish momentum. Implementing a 104pc US tariff on Chinese imports further escalated the “tariff war” between the two global trade giants. This development further dampened investor sentiment at the PSX in anticipation of heightened recession risks due to a slowdown in global growth.
From Pakistan’s perspective, continuous decline in international prices could likely play a “blessing in disguise” as this decline will most likely offset any drawdown in exports and remittances due to this new ‘tariff war’ phenomenon. Because of this expectation, Pakistan’s equities are showing some resilience relative to their peers in the ongoing global equity sell-off, Mr Najib noted.
Trading activity remained lower, with 446.6 million shares exchanged, amounting to Rs26.5bn.
Published in Dawn, April 10th, 2025
