The Pakistan stock exchange decreased on Wednesday by more than 2,600 points, one day after the index registered a slight recovery after the agitation of the global market in response to the fears that the commercial war between the United States and China would increase.
The KSE-100 reference index fell by 2,640.95 points, or 2.29 percent, to stand at 112,891.48 at 10:49 am from the previous closure of 115,532.43.
The decrease occurs when the additional tariffs of the United States. In Chinese imports they will reach 104pc today, since Washington doubles into the planned action after Beijing promised a “fight until the end” in the encumbrances.
Awais Ashraf, research director of AKD Securities, said that the increase in American tariffs on China to 104PC has “increased recession risks due to a slowdown in global growth, cushioning the feeling of investors in the PSX.”
“However, the lowest prices of basic products, especially oil, and a possible competitive advantage of new tariffs could positively affect our external account,” Ashraf said.
Yesterday, Ali Najib, Chief of Sales of Insight Securities, emphasized the need to observe market behavior after April 9, when world commercial tariffs will be implemented and will evaluate their repercussions in affected countries.
He said that reciprocal tariffs could trigger market volatility, with the feeling of investors that become cautious, adding that export -based actions could decrease, while assets with safe waters as gold could win.
Commercial tensions with countries that have large commercial volumes could cause reprisals, affecting global supply chains and profit prospects, which can lead to a short -term market setback.
Today’s fall follows the Bloodbath on Monday at the PSX when the shares fell by 3,882 points in the middle of the growing fears of a global recession and reprisals of the main commercial and Chinese partners of the United States.
That day, the KSE-100 index witnessed a record drop of one day (in terms of points) of 8,687.68 points, before partially recovering some losses in the late value hunt, after a media stop at halfway.
More to follow
