PSX Faces Selling Pressure, KSE-100 Dips

The Pakistan Stock Exchange (PSX) experienced sustained selling pressure, leading to a decline of over 700 points in the KSE-100 Index during Tuesday’s trading session.

At approximately 11:30 am, the KSE-100 Index stood at 113,351.90, reflecting a decrease of 712 points compared to the previous day’s closing figure.

The benchmark index concluded Monday’s trading session with a loss of 1,405.45 points.

Geopolitical concerns have contributed to the stock market’s subdued performance since the preceding week.

Global Market Overview

On the global stage, stocks exhibited a sideways trend on Tuesday. Concurrently, the dollar was poised for its most significant monthly decline in several years, as investors anticipated the impact of the trade war on corporate earnings and economic indicators.

Tariffs imposed by the US administration have undermined confidence in US assets. Despite subsequent pullbacks that aided the S&P 500 in recovering a substantial portion of its early losses from April, the dollar has only managed to stabilize, lacking a robust rebound.

The dollar weakened overnight following remarks by the US Treasury Secretary indicating that tariff de-escalation was incumbent upon China. Existing tariffs stand at 125% for a majority of US exports to China.

A holiday in Japan resulted in reduced currency trading activity during the Asian session, leaving most currency pairs relatively stable. However, the euro, at $1.1409 and showing a 5% increase in April, is on track for its largest monthly gain against the dollar in nearly 15 years. The dollar’s 7% decline against the Swiss franc represents its largest drop in a decade.

Futures for the Nikkei and S&P 500 edged upwards, supported by indications of potential easing of automotive tariffs. Nonetheless, investors are awaiting more substantial relief concerning the considerable US tariffs on China.

This information constitutes an intra-day market update.