Monitoring Desk
The Pakistan Stock Exchange (PSX) staged a strong recovery on Thursday, gaining over 2,000 points, following a major policy shift by US President Donald Trump, who announced a 90-day suspension of his new tariffs on countries other than China.
The benchmark KSE-100 index surged by 3,331.01 points, or 2.92%, reaching 117,484.16 shortly after the market opened at 9:33am, compared to the previous close of 114,153.15. Despite a midday dip, the market remained in the green, maintaining investor confidence throughout the session.
By 12:19pm, the index stood at 116,499.52, showing a net gain of 2,346.37 points, or 2.06%, as investor sentiment improved in line with international markets.
Mohammed Sohail, CEO of Topline Securities, said: “Following international market trends, PSX opened up by nearly 3,000 points, close to 2.5%.”
Awais Ashraf, research director at AKD Securities, attributed the bullish momentum to the temporary suspension of tariffs. “Investors are now refocusing on improving macroeconomic fundamentals,” he noted, adding that Pakistan, being an import-driven economy heavily reliant on oil, stands to benefit significantly from the recent drop in oil prices.
Ashraf estimated that a $10 per barrel decrease in oil could lower Pakistan’s import bill by $2.1 billion, offering relief on both inflation and the external account.
The rebound came just a day after PSX suffered a sharp drop amid fears of a deepening US-China trade war. Trump’s announcement marked a surprising reversal, coming less than 24 hours after new tariffs took effect on a wide range of imports. While tariffs on Chinese goods were raised to 125% from 104%, Trump indicated relief for other trade partners.
Market analysts believe the 90-day tariff pause could help stabilize global equities and give economies, including Pakistan, much-needed breathing room amid ongoing trade uncertainty.
