A major sell-off rocked the Pakistan Stock Exchange (PSX) on Monday, following a global market turmoil sparked by former U.S. President Donald Trump’s sweeping tariff announcement. The benchmark KSE-100 Index plunged over five percent early in the day, prompting a 45-minute trading halt.
The market remained under pressure even after trading resumed, eventually falling by more than 7,000 points at its lowest. However, a modest rebound was seen by the close of the session, with the index recovering nearly half of its total losses.
At 9:35am, the KSE-100 Index was down 3,167.78 points, or 2.67%, standing at 115,623.88. Losses deepened as the session progressed, and by midday, the index had dropped by 6,287 points or 5.29%. This steep fall triggered a temporary suspension in trading.
Following the resumption, the index dipped further to 111,928.22, marking a total intraday loss of 6,863 points. By 1:15pm, the index reached its lowest level of the day, having fallen more than 7,000 points. However, the market later rebounded to 114,909.48, ending the session down 3,882 points, or 3.27%.
The decline affected a broad range of sectors, including cement, commercial banking, oil and gas exploration, oil marketing, refining, and power generation. Key companies such as HUBCO, ARL, MARI, OGDC, PPL, POL, PSO, SNGPL, SSGC, and HBL all posted losses.
This downturn came on the heels of a brief rally last week, during which the KSE-100 Index surged past 120,000 points before ending slightly lower at 118,791. The earlier optimism was short-lived, especially as global markets reeled from Trump’s announcement of tariffs on imports from more than 100 countries, including Pakistan.
The effects of these protectionist measures were felt worldwide. Japan’s Nikkei 225 Index slumped over 6%, while Hong Kong’s Hang Seng Index recorded a sharp 10.8% drop. China’s Shanghai Index fell by 6.3%, South Korea’s KOSPI declined by 4.6%, and India’s BSE Sensex lost 4.1%.
