KARACHI: Stocks witnessed significant volatility on Monday. The benchmark KSE-100 index plunged 1,511 points, putting pressure on global equities due to Trump’s levies on close trading partners.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index plunged by 1,510.72 points, or 1.32 per cent, to 112,745.01 points, down from the 114,255.73 points recorded in the last session. The highest index of the day remained at 114,620.79 points, while the lowest level was recorded at 112,681.34 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed lower amid selling pressure in global equities on Trump tariff levies on close trading partners and worries over cautious SBP policy easing despite CPI inflation at 2.4 per cent YoY for January 2025.”

He said that rupee instability, political noise and uncertainty over the outcome of the IMF review this month, which coincided with a shortfall in tax collection targets, played a catalyst role in the bearish activity.

The KSE-30 index decreased by 509.91 points or 1.42 per cent to 35,359.61 points against 35,869.52 points.

Traded shares decreased by 142 million shares to 401.456 million shares from 543.124 million shares. The trading value dropped to Rs20.351 billion from Rs27.973 billion. Market capital lowered to Rs13.933 trillion against Rs14.053 trillion. Of the 450 companies active in the session, 137 closed in green, 262 in red, and 51 remained unchanged.

Analyst Maaz Mulla at Topline Securities said the KSE-100 Index mirrored the trend in global markets, reacting negatively to the news that US President Donald Trump had ordered sweeping tariffs on goods from Mexico, Canada and China. “This announcement created a ripple effect in international markets, and the local market followed suit,” he said.

“Investor sentiment was largely influenced by the growing concerns over escalating trade tensions and the potential impact on global economic stability. Consequently, the KSE-100 followed the international market’s lead, with significant losses across various sectors.”

On the domestic front, Pakistan’s Consumer Price Index (CPI) for January 2025 was recorded at 2.41 per cent, the lowest level in 111 months (over nine years), compared to 4.1 per cent in December 2024, providing a brief positive note amid the broader market decline. Key contributors to the index’s negative performance included ENGROH, MARI, FFC, SYS and PPL, which collectively accounted for a loss of 769 points.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs77.83 to Rs22,383.33 per share, followed by Sazgar Engineering Works Limited, which increased by Rs39.19 to Rs1,062.95 per share. A significant decline was noted in Sapphire Fibres Limited, which fell by Rs68.45 to Rs1,060.55 per share; Rafhan Maize Products Company Limited followed it, which closed lower by Rs65.30 to Rs9,483.33 per share.

Muhammad Hasan Ather, an analyst at JS Global, said the KSE-100 Index witnessed significant selling pressure on Thursday. “Political uncertainty, particularly surrounding PTI’s planned rally, contributed to the downturn,” he said. “Despite this, domestic liquidity remains a key driver.”

He said, “The outlook suggests cautious trading, with potential opportunities in undervalued energy stocks amid ongoing volatility.”

WorldCall Telecom remained the volume leader with 26.261 million shares, which closed lower by one paisa to Rs1.63 per share. B.O. Punjab, with 24.695 million shares, followed it, which closed higher by 12 paisas to Rs10.23 per share.

Other significant turnover stocks included Ghani Chemical, Cnergyico PK, Fauji Cement, Pak Refinery, K-Electric Ltd, Siddiqsons Tin, Citi Pharma Ltd, and National Bank XD.

In the futures market, 320 companies recorded trading, 85 of which increased, 231 decreased and 4 remained unchanged.