PSX Soars as US Reduces Tariffs on Pakistani Goods

The Pakistan Stock Exchange (PSX) experienced a surge on Friday, fueled by positive investor sentiment following the United States’ decision to lower reciprocal tariffs on Pakistani products. During the initial trading session, the benchmark KSE-100 Index increased by nearly 500 points.

By 12pm, the KSE-100 Index stood at 139,873.49, reflecting a gain of 483.07 points, or 0.35%.

Key sectors such as cement, commercial banks, fertilizer, oil and gas exploration companies, and oil marketing companies (OMCs) saw significant buying activity. Major stocks, including MARI, OGDC, SNGPL, SSGC, and FFC, demonstrated positive trading performance.

US Tariff Reduction

The US administration has set a 19% reciprocal tariff on a variety of Pakistani goods, which is notably less than the originally suggested 29%. This decision was part of a broad new executive order signed by President Donald Trump.

On Thursday evening, President Trump formalized an executive order that imposed tariffs ranging from 10% to 41% on US imports from numerous countries and foreign territories.

The tariff rates for exports to the US were established at 25% for India, 20% for Taiwan, 19% for Thailand, and 15% for South Korea.

Furthermore, duties on Canadian goods were raised from 25% to 35% for items not included in the US-Mexico-Canada trade agreement. Mexico was granted a 90-day extension to negotiate a more comprehensive trade agreement before the higher tariffs take effect.

Previous Day’s Market Performance

On Thursday, the PSX rebounded strongly, driven by robust bullish momentum. This increase followed President Donald Trump’s announcement of a preliminary trade agreement with Pakistan.

The KSE-100 Index increased by a notable 978 points, which is equivalent to a 0.71% rise, ultimately closing at 139,390.42 points.

Asian Markets Overview

Asian markets declined on Friday in response to the US imposing steep tariffs on numerous trading partners. Investors are also awaiting US jobs data, which could influence the Federal Reserve’s decision on potential rate cuts next month.

MSCI’s broadest index of Asia-Pacific shares outside Japan decreased by 0.7%, resulting in a total weekly loss of 1.8%. South Korea’s KOSPI fell by 3%, while Taiwanese shares dropped by 0.9%.

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

EUROSTOXX 50 futures declined by 0.2%. Both Nasdaq futures and S&P 500 futures decreased by 0.2% following Amazon’s earnings report, which failed to meet high expectations, resulting in a 6.6% drop in its shares after hours.