KARACH: The Pakistan Stock Exchange (PSX) suffered a sharp decline of over 6,200 points in intraday trade on Monday, as global stock markets plunged following escalating trade tensions between the United States and China.
The KSE-100 index fell by 6,287.22 points, or 5.29%, dropping to 112,504.44 from the previous close of 118,791.66.
Market analysts attributed the steep drop to investor concerns over the potential global recession triggered by higher tariffs, which could lead to weakeI: ned demand.
Due to this immediate sell off, at midday, the PSX has halted the trading session for 60 minutes for the market to cool down.
The sell-off was widespread, affecting major sectors, including cement, commercial banks, oil and gas, exploration companies, and power generation.
Key stocks, including HUBCO, ARL, MARI, OGDC, PPL, POL, PSO, SNGPL, SSGC, and HBL, were all in the red.
By 11:16 am, the benchmark index was trading at 115,450.50, marking a 2.81% or 3341.15 points decrease.
The sharp fall in the PSX came on the heels of a strong week, where the KSE-100 index had posted gains. The index had risen by 984 points, or 0.84%, to close at 118,791 points, up from 117,807 points the previous week.
Globally, the financial carnage was driven by the trade war between the US and China. US officials remained firm on implementing tariffs, causing widespread concern about a potential recession. The market also anticipated US interest rate cuts, which further fueled the turmoil. In Asia, major stock indexes slumped, with Japan’s Nikkei down by 6% and South Korea’s market dropping by 5%. European markets followed suit, with the EUROSTOXX 50 futures down by 3%.
The continued trade friction sent oil prices lower, with Brent crude falling by $1.35 to $64.23 a barrel and US crude down by $1.395 to $60.60 per barrel. With global markets in turmoil, investors are bracing for further volatility in the coming weeks.
