PSX Faces Heavy Selling Pressure

The Pakistan Stock Exchange (PSX) experienced significant selling pressure at the start of trading today, with the benchmark KSE-100 Index plummeting by over 2,500 points in the opening hours.

While the KSE-100 managed to regain some ground, it remained down by 786 points as of 11:00 AM. The index was recorded at 116,439.83, a decrease from the previous session’s closing value of 117,226.15.

Increased tensions between Pakistan and India may have negatively impacted the stock market’s performance.

Yesterday, India reportedly paused discussions regarding the Indus Waters Treaty with Pakistan. This action followed an assault on tourists in the Pahalgam region of Indian Illegally Occupied Jammu and Kashmir (IIOJK), which New Delhi has attributed to Pakistan.

Globally, stock markets displayed a generally weak trend today. A prior increase in the dollar’s value diminished as investors navigated uncertain signals from the U.S. administration regarding tariffs and the Federal Reserve’s direction.

Earlier this week, U.S. President Donald Trump criticized Federal Reserve Chairman Jerome Powell, then withdrew demands for his resignation. This left investors unclear about the future of tariffs on China, despite numerous reports on the matter.

A source informed Reuters on Wednesday that the Trump administration might consider lowering tariffs on imported Chinese goods, pending talks with Beijing. This followed a Wall Street Journal report suggesting the White House was contemplating reducing tariffs on Chinese imports.

However, Treasury Secretary Scott Bessent subsequently stated that any such move would not be unilateral, echoing remarks made by White House spokesperson Karoline Leavitt.

This information reflects an update during the trading day.