KARACHI: The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Wednesday. The benchmark KSE-100 Index plunged by 1,379 points amid the global trade war and the US’s tariff increase for Pakistan. The news that US President Donald Trump has announced a 90-day pause on reciprocal and 10 per cent universal tariffs came hours after the market closed.
The index decreased by 1,379.28 points, or 1.19 per cent, to 114,153.16 points, down from the 115,532.43 points recorded in the last session. The highest index of the day remained at 115,092.12 points, while the lowest level was recorded at 112,891.49 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks fell sharply amid rout in global equities and a slump in global crude oil prices on intensifying global trade war.”He said that a weak rupee and uncertainty over the outcome of US tariff levies on Pakistan exports played a catalyst role in the bearish close at the PSX.
The KSE-30 index decreased by 461.26 points or 1.29 per cent to 35,200.42 points against 35,661.68 points. Traded shares decreased by 82 million shares to 448.693 million shares from 530.694 million shares. The trading value dropped to Rs26.585 billion from Rs33.676 billion. Market capital narrowed to Rs13.984 trillion against Rs14.139 trillion. Of the 450 companies active in the session, 118 closed in green, 281 in red, and 51 remained unchanged.
Analyst Maaz Mulla at Topline Securities said the Pakistan Stock Exchange remained under significant pressure, as 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 as much as 2,640 points during the session. Although some recovery was seen in the latter half of the day, the index ultimately settled at 114,153 points, marking a net decline of 1,379 points or 1.19 per cent.
The major drag on the index came from UBL, ENGRO, OGDC, PPL, and SYS, which collectively contributed a negative impact of 639 points.Traded value-wise MARI (Rs3.87 billion), PSO (Rs1.36 billion), DGKC (Rs1.28 billion), OGDC (Rs1.15 billion) and MLCF (Rs1.12 billion) dominated the trading activity.
The highest increase was recorded in Philip Morris (Pakistan) Limited, which rose by Rs118.82 to Rs1,307.02 per share, followed by PIA Holding Company Limited B, which increased by Rs97.76 to Rs1,102.34 per share. A significant decline was noted in Hoechst Pakistan Limited, which fell by Rs134.31 to Rs3,055.69 per share; Service Industries Limited followed it, which closed lower by Rs60.23 to Rs932.40 per share.
Analyst Muhamad Hasan Ather at JS Global said this downturn stemmed from escalating political uncertainty, concerns over economic reforms, which has created tension in global markets too. “The market breached several psychological thresholds, amplifying investor anxiety.
He said that the market’s trajectory would remain volatile until there is greater clarity on both political and economic fronts. “Stakeholders should approach with caution amidst these uncertainties,” he suggested.
K-Electric Ltd remained the volume leader with 54.549 million shares, which closed lower by 7 paisas to Rs4.21 per share. Cnergyico PK, with 51.834 million shares, followed it, which closed lower by 8 paisas to Rs8.32 per share.
Other significant turnover stocks included PIA Holding Company, At-Tahur Ltd., Maple Leaf, WorldCall Telecom, PTCL, Pak Int Bulk, BO Punjab XD and Fauji Cement.In the futures market, 312 companies recorded trading, 63 of which increased, 247 decreased and 2 remained unchanged.
