The Pakistan Stock Exchange (PSX) fell by 3,882 points on Monday in the middle of the agitation of the global market after China’s retaliation rates against the United States.
The Reference KSE-100 index fell to 3,882.18 points, or 3.27 percent, to stand at 114,909.48 of the previous closure of 118,791.66.
The trade stopped previously in the PSX for an hour after the reference index collapsed by 6,000 points that triggered the suspension, only to drop another 2,000 points when trade resumed.
Automatic circuit switches are designed to avoid panic sale and provide investors time to reassess during extreme market volatility.
The KSE-100 reference index initially decreased to 6,287.22 points, or 5.29 percent at 11:58 am, before the trade stopped. Shortly after reopening, decreased by a cumulative 8,687.69, or 7.31pc, from the last close to 110,103.97 at 1:15 pm
At 2:02 pm, the index stood at 113,154.63, by 5,637.03 or 4.75pc, since the last closure.
What happened so far:
- Suspended market at 11:58 am for an hour for a cooling period
- The attributes of the analyst decline to global recession fears
- The brokerage firm says decline from day to day record
- The main stock index index index falls more than 3pc in the open
- The sale in Asia was in all areas, without the sector is not damaged
Awais Ashraf, the investigation of the director of AKD Securities, attributed the decline to “the fears of the investors that the rates of rates could lead to the global recession through a weaker demand.”
“We believe it is an economy directed by imports … the imposition of American tariffs would benefit us due to the possible decrease in world prices of basic products,” he added.
Mohammed Sohail, executive director of Topine Securities, also attributed the decrease in the accident of the global market.
He pointed out that the stock market had stopped after 5 percent fall to cool around 12 pm
Sohail added that the market lost today due to the growing tariff war initiated by the United States.
“After stopping when 5 percent fell, [the] Commerce was resumed later [a] Cooling period and saw some purchase value, ”he said.
He said that the oil and gas exploration sector, technology and the textile sector were expected to be affected, since they were linked to the world prices of basic products or global aggregate demand.
A PSX notice said that a market stop had been activated due to a 5-piece decrease in the KSE-30 index of the previous negotiation day, adding that all pending orders had been automatically canceled by the system.
He pointed out that the market will resume at 1:03 pm after being suspended at 11:58 am
Arif Habib Limited, in a note, said that this was a historic decline day by day, which led to a market stand.
Yousuf M. Farooq, research director of Chase Securities, said: “Contagion. The markets are widely reduced by the fear of a global recession.
On the initial decrease, he had noticed that the index had witnessed “a relatively modest drop compared to other regional markets.”
He pointed out that there was a remarkable sale pressure in oil and bank stock.
“It is expected that the lowest oil prices negatively affect profits for oil exploration companies,” he said, highlighting that at the same time, textile exporters could “face winds against new US tariffs.”
“While these tariffs pose short -term risks, particularly for the textile sector, the general impact of the United States commercial policy can be positive to Pakistan, especially if the prices of basic products remain low,” he added.
In the short term, he commented that the textile sector could face profitability challenges due to direct and indirect impact (first and second round).
“However, the lowest world prices of basic products can help relieve inflationary pressures nationwide, which can lead to lower interest rates,” he said. “This, in turn, could support a gradual recovery of the valuations.”
On the role of the government, he emphasized that the federal government would have to “move quickly and begin negotiations for the elimination of Pakistani products tariffs.”
The previous time that the PSX had seen such a massive fall was on December 19, 2024 when the KSE-100 index showed 4,795.31 points in the middle of an increase in political noise and US sanctions related to the missile program against Pakistani companies.
The commercial floors were exceeded by a wave of sale when investors fled to the hills on the worst day of shares from the pandemic, with Hong Kong spilling 10 percent, tokio briefly briefly 8pc and Taipei more than 9 percent.
Futures for Wall Street markets were also taking another zurra, while concerns about the impact on demand also saw the basic products fall.
Donald Trump caused a market collapse last week when he presented radical tariffs against US commercial partners so he says they were years of being torn and said that governments were aligned to obtain agreements with Washington.
But after Asian markets closed on Friday, China said it would impose retaliation levies of 34 percent in all US products from April 10.
He also imposed export controls in seven rare earth elements, including gadolinio, commonly used in IRM, and Ittrium, used in consumer electronics.
The hopes that the president of the United States would rethink his policy in the light of agitation that vanished on Sunday when he said he would not reach an agreement with other countries unless commercial deficits were resolved.
He denied that there was an intentionally engineering of a sale and insisted that he could not foresee market reactions.
“Sometimes you have to take medications to fix something,” he said about the rules that have cleaned billions of dollars of the company’s valuations.
The main stock index index index falls more than 3pc in the open
Meanwhile, Indian actions fell at the beginning of negotiation, with the NIFTY reference index more than 3pc.
Trump slapped a flat 26pc rate on India imports last week, with New Delhi saying that he was examining both “implications” and “opportunities” of tax walks.
The Nifty 50, which presents the largest Indian companies in the National Securities Stock Exchange, fell 3.55 percent.
The ingenious TI, the powerful information technology companies in the country and that have the United States as their largest market, fell 5.53pc.
The times of India Called stocks collapse as a “blood bath.”
India today He pointed out that it was one of the largest falls in the market since May 2024, when unexpected electoral results shook the markets.
After the tariffs were announced, the India Department of Commerce said it was “carefully examining the implications of the various measures”, and added in a statement that “I was also studying the opportunities that may arise due to this new development.”
The pharmaceutical sector of India, which exported more than $ 8 billion products to the United States in fiscal year 2024, emerged unscathed, with medications exempt from its movement of reciprocal rates.
Trump, speaking while revealing the rates, said that the Indian prime minister, Narendra Modi, was a “great friend” but that he had not been “treating us well.”
The sector was not saved
The sale in Asia was in all areas, without the unharmed sector for wild sale: technology companies, car manufacturers, banks, casinos and energy companies felt pain when investors left the most risky assets.
Among the largest losers, Chinese electronic commerce titans shuddered more than 14 percent and the rival JD.com threw 13pc, while the Japanese technological investment giant Softbank docked more than 10pcand Sony gave 9.6pc.
Shanghai threw more than six PC and Singapore eight PC, while Seoul gave more than five PC that triggered a so -called Sidecar mechanism, for the first time in eight months, which briefly stopped some shops.
Sydney, Wellington, Manila and Mumbai were also in red. Steve Cochrane, chief economist of Asia-Pacific from Moody’s Analytics, said: “We could see that a recession occurs very quickly in the United States, and could last throughout the year, it could be quite long.
“And if there is a recession in the United States, of course, China will also feel it because the demand for their goods will be struck even stronger. More than what would have been beaten only by tariffs.” The concerns about demand saw that oil prices sank more than three PC on Monday, after having fallen around seven PC on Friday. Both main contracts are now at their lowest levels since 2021.
Copper, a vital component for energy storage, electric vehicles, solar panels and wind turbines, also extended losses.
“The market is in free drop mode, hitting through the floors,” said Stephen Innes of Spi Asset Management. “Trump’s team is not flashing. The rates are being treated as a victory return, not as a negotiation chip.” The losses followed another carnage day on Wall Street on Friday, where the three main indices fell almost 6 percent.
That occurred after the head of the Federal Reserve, Jerome Powell, said that American tariffs will probably make inflation increase and growth slowly and warned about a “high” risk of greater unemployment.
It is likely that Trump’s measures give us central bankers a headache while trying to balance the need for interest rate cuts to support the economy with the need to maintain a pricing lid.
His comments occurred after Trump insisted that “my policies will never change” and urged the Fed to reduce rates.
“Powell’s hands are tied,” said Innes. “He is recognized how obvious, that tariffs are inflationary and recessive, but is not pointing out a ransom.
“And that is the problem. This time, Fed’s inflation mandate forces him to maintain the rolled safety network while asset prices caught fire.”
Tim Waterer, KCM Trade Mercado Chief Analyst, said: “Merchants are nervously observing the two largest economies dedicated to tariffs and fear that both can receive knockout blows from a prolonged economic struggle.”
Border market bonds trapped in a large sale of people with more than 13 cents
Separately, international sovereign bonds of several border markets suffered strong liquidations.
The bonds called in longer dollars issued by Pakistan fell more than 13 cents, the more than 6 cents of Sri Lanka, while those of Egypt, Angola and Kenia fell more than 4 cents per dollar, showed the Tradeweb data.
Additional information taken from Reuters.
