KSE-100 Index Plummets Amidst Market Uncertainty

The Pakistan Stock Exchange (PSX) experienced a wave of negative investor sentiment, as the benchmark KSE-100 Index declined by nearly 800 points during Monday’s trading session.

At approximately 12:10 PM, the index was recorded at 118,317.47, reflecting a decrease of 785.20 points, equivalent to a 0.66% drop.

Notable selling activity was evident across several key sectors, including automobile manufacturing, oil and gas exploration, oil marketing companies, and power generation. Major stocks such as HUBCO, OGDC, PPL, POL, MARI, PSO, and SSGC all traded negatively.

Over the past week, the PSX faced continuous headwinds as investors exercised caution in anticipation of the upcoming federal budget. Growing unease regarding potential tax measures contributed to the market’s sustained downward trajectory.

The KSE-100 Index concluded the previous week at 119,102.67 points, marking a decrease of 546.47 points, or 0.45%, compared to the previous week’s close of 119,649.14 points.

Global Market Overview

Across Asia, stock markets generally showed slight gains on Monday. The euro strengthened after President Trump postponed the imposition of 50% tariffs on EU goods, offering a temporary reprieve within his trade strategy.

On Sunday, President Trump extended trade talk deadlines to July 9, following discussions with European Commission President Ursula von der Leyen, who requested more time to finalize a suitable agreement.

Market confidence had been stabilizing after a significant sell-off last month. Investors are closely monitoring fresh trade developments after previous agreements with the UK and China.

However, these policy shifts highlight the potential for rapid changes, leading analysts to observe a shift in investment from the US towards Europe and Asia, driven by concerns over a possible US recession and subsequent global economic slowdown.

Apple faced trade-related challenges on Friday when President Trump threatened a 25% tariff on all imported iPhones for US consumers.

MSCI’s index of Asia-Pacific shares outside Japan saw a slight increase of 0.12% on Monday, while Japan’s Nikkei experienced marginal gains.

Intra-day Update

This report provides an update on intra-day trading activities.