An bearish trend seized the Pakistan Stock Exchange (PSX) again on Friday, since the market decreased by more than 1,300 points after the positive feelings that promoted the basis of a recovery one day before were impressed by the war in the way.
The fall followed China saying that it would raise tariffs on US goods to 125 percent.
The KSE-100 reference index decreased by 1,335.88 points, or 1.15PC, to close to 114,853.33 from the previous closure of 116,189.21.
Yousuf M. Farooq, research director of Chase Securities, said the market closed today as the participants reassess the broader implications of US tariffs, particularly their impact on global and China commercial dynamics. “While the initial reaction suggested that some Pakistani exporters could benefit from an improved access to the US market, attention is now changing to the second round effects, including the risk of a slowdown in other economies promoted by export due to the greater competition of China,” he added.
Farooq said that Pakistan remains relatively isolated from the direct consequences, given its limited export base and the recent acute fall in world prices of basic products. “However, for this to translate into a positive net price and the low prices of the basic products should be maintained. If that happens, the Central Bank would have space to gradually reduce interest rates, which potentially leads to a restart of shares through multiples of greater price to profits,” he explained.
The president of the United States, Donald Trump, has deployed radical rates, including painfully higher taxes for dozens of important economies, such as a stick to force manufacturers to be based on the United States and for countries to decrease barriers for US goods.
But after market agitation this week, it flicked first in its impulse to remodel the post -war global trade system and froze many rates for 90 days, although it raised them to China to an amazing total of 145pc.
The last round of Beijing reprisals carries its levies to 125 percent, effective on Saturday. However, the Chinese Finance Ministry said that more measures from the United States were ignored because “at the current tariff level, there is no possibility of market acceptance for US goods exported to China.”
More to follow.
