KARACHI – Pakistan Stock Exchange (PSX) witnessed a drop in first official day of the week after Eid break, but investors are cautioned due to the potential impact of US President Donald Trump’s sweeping tariffs on over 180 countries, including Pakistan.
KSE-100 Index dropped by 200 points, early in the day but the market moved up 300 points to 118,138 in the afternoon. Stock market faced significant selling pressure across key sectors, including oil and gas marketing companies, power generation, cement, refineries, and banking.
The uncertainty in the stock market comes amid Donald Trump’s announcement of 10% reciprocal tariffs on imports from countries around the world, including specific additional levies on major trading partners like China and EU.
As part of his trade policy, Trump imposed a 29% reciprocal tariff on Pakistan, further contributing to investor unease. The announcement led to heightened uncertainty about the potential long-term effects on trade, local businesses, and the broader economy.
Stock markets in parts of world also reacted strongly to Trump’s tariff announcement, with US stocks diving and international markets showing sharp declines. As result, investor sentiment at the PSX remained cautious, with concerns growing about the economic impact of the new tariffs on both local and international levels.
Analysts suggest that current market volatility is expected to continue as global markets adjust to the changes in trade policy, adding to the pressure already faced by Pakistan’s economy.
