PSX Soars as US Reduces Tariffs on Pakistani Goods

The Pakistan Stock Exchange (PSX) experienced robust buying activity on Friday, fueled by investor optimism following the reduction of US reciprocal tariffs on Pakistani products. The KSE-100 Index gained nearly 500 points in the initial trading session.

By 12pm, the benchmark index reached 139,873.49, reflecting an increase of 483.07 points, or 0.35%.

Interest was particularly strong in sectors such as cement, commercial banks, fertiliser, oil and gas exploration, and OMCs. Major stocks including MARI, OGDC, SNGPL, SSGC, and FFC showed positive movement.

US Tariff Reduction Details

The US administration has set a 19% reciprocal tariff on various Pakistani goods, a significant decrease from the originally anticipated 29%. This adjustment was part of a recent executive order signed by President Donald Trump.

On Thursday, President Trump issued an executive order imposing tariffs ranging from 10% to 41% on US imports from numerous countries and foreign locations.

The tariffs included rates of 25% for Indian exports to the US, 20% for Taiwan, 19% for Thailand, and 15% for South Korea.

Duties on Canadian goods were also raised to 35% from 25% for products not included in the US-Mexico-Canada trade agreement. Mexico was granted a 90-day period to negotiate a broader trade agreement before the higher tariffs take effect.

Previous Day’s Market Performance

On Thursday, the PSX rebounded strongly with bullish sentiment prevailing. This surge followed President Trump’s announcement of a trade deal with Pakistan.

The KSE-100 Index increased by 978 points, or 0.71%, closing at 139,390.42 points.

Global Market Overview

Asian shares declined on Friday following the US imposition of tariffs on numerous trading partners. Investors are also awaiting US jobs data, which could influence the likelihood of a Federal Reserve rate cut next month.

MSCI’s broadest index of Asia-Pacific shares outside Japan decreased by 0.7%, bringing the week’s total loss to 1.8%. South Korea’s KOSPI fell by 3%, while Taiwanese shares dropped by 0.9%.

Japan’s Nikkei experienced a 0.4% decrease. Chinese blue chips remained stable, and Hong Kong’s Hang Seng index saw a slight increase of 0.2%.

EUROSTOXX 50 futures edged down by 0.2%. Nasdaq futures and S&P 500 futures both decreased by 0.2% after Amazon’s earnings fell short of expectations, causing its shares to decline by 6.6% in after-hours trading.