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The Pakistan Stock Exchange (PSX) faced a major downturn on Monday as the KSE-100 index dropped sharply by over 3,300 points, reflecting a 2.78% loss. This significant decline follows global market turbulence sparked by U.S. President Donald Trump’s announcement of sweeping trade tariffs.
Global Repercussions of Trump’s Tariffs
Trump’s trade policy has led to a global sell-off, sending shockwaves through equity markets worldwide. Following his imposition of a 10% baseline tariff on imports from all nations, stock markets across Asia, Europe, and the U.S. have seen massive declines. The KSE-100 index was no exception, shedding 3,303 points, and dropping to 115,488 points. The massive losses echoed those seen in global markets, as concerns about a potential trade war mounted.
The local market was deeply affected by these global developments. By 10 AM, the KSE-100 index had already fallen by 2.45%, losing 2,915 points. A total of 110,474,030 shares were traded, with Rs. 6.38 billion in value exchanged. Out of 365 companies that traded, 299 saw their share prices decline, highlighting the widespread impact of the crisis.
The top performers on the day were mostly stocks in the red, with companies like CNERGY, WTL, and BOP leading the losses. CNERGY, for example, saw a drop of Rs. 0.29 per share, and the total volume traded in this stock reached nearly 14 million shares.
Despite the severe losses in global markets, some analysts, like Cramer, have pointed out that the U.S. job market remains strong, potentially preventing the economy from slipping into a recession. However, the ongoing volatility, combined with rising inflation and stagnating growth, has left many investors uncertain about the future.
