PSX Sees Significant Decline as 100-Index Drops Over 3,500 Points

The Pakistan Stock Exchange (PSX) experienced a significant downturn on Tuesday, with the 100-Index falling by 3,505.62 points. This marked a negative change of 3.57 percent, bringing the index to a close at 94,574.16 points, down from 98,079.78 points recorded on the previous trading day.

In terms of trading volume, a total of 1,116,324,649 shares were traded on this day, a considerable increase from the 640,258,528 shares transacted during the prior session. The total value of shares traded also saw a rise, reaching Rs 43.291 billion compared to Rs 25.623 billion on the last trading day.

The trading dynamics involved 456 companies, among which 53 experienced gains while 355 faced losses. Additionally, the share prices of 48 companies remained stable with no changes.

Among the most actively traded stocks were K-Electric Limited, with 101,636,133 shares traded at a price of Rs 4.65 each; Bank of Punjab, with 92,023,190 shares at Rs 6.85; and Hascol Petrol, with 73,320,431 shares at Rs 13.59.

The company that saw the largest price increase was Sapphire Textile Mills Limited, which gained Rs 40.88 per share, closing at Rs 1,177.99. Following it was Mehmood Textile Mills Limited, whose shares rose by Rs 35.02 to close at Rs 535.40.

On the other hand, Rafhan Maize Products Company Limited recorded the highest decline, falling by Rs 141.07 per share to close at Rs 7,813.48. Unilever Pakistan Foods Limited also faced a loss, with its share price dropping by Rs 112.79 to finish at Rs 19,019.35.

The overall bearish trend in the stock market coincides with a broader context of declining sentiment in Asian markets, amid concerns regarding trade relations. Recently, former President Donald Trump announced his intention to impose significant tariffs on China, Mexico, and Canada. This unexpected declaration, made via his Truth Social account, signaled a potential return to harsher trade policies, raising fears of a renewed trade war.

Trump's statements indicated plans to levy a 25 percent tariff on all imports from Mexico and Canada and a 10 percent tariff on Chinese products. These developments led to a sell-off in various Asian markets, despite some gains in Hong Kong and Shanghai.

Market analysts observed that this resurgence of hardline trade policies significantly dampened hopes for a moderate approach under new leadership. The dollar strengthened against several currencies, while the yen gained traction as a safe haven asset amidst rising uncertainties.

In light of these events, the stock market's reaction reflected a mixture of local selling pressures alongside external economic factors, contributing to a turbulent trading environment.

PSX, Stocks, Trading