KSE Index Drops 802 Points Amid Global Trade Tensions

The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Tuesday, with the benchmark KSE-100 Index losing 802.56 points to close at 115,042.25, as heavyweight stocks and global trade tensions weighed on investor sentiment.

The index fluctuated throughout the day, initially rising to a high of 116,424.85 before falling to an intraday low of 114,783.71. Major contributors to the decline included MARI, HUBC, OGDC, LUCK, and PSO, accounting for a loss of 543 points. Despite gains in Fertiliser, Investment Banks/Securities Companies, and Textile Composite, the All-Share Index decreased by 522.76 points to close at 71,419.59.

Market participation increased, with 767.27 million shares traded, but the value of shares traded declined to Rs31.83 billion. The Pakistani rupee also depreciated 0.06% to Rs278.82 against the US dollar. Analysts expect potential interest rate cuts, which could impact market momentum. Meanwhile, US President Donald Trump's announcements on trade tariffs weighed on investor sentiment, contributing to the decline.

The decline in the KSE-100 Index is attributed to selling by institutional investors, including pension and mutual funds, who opted for restructuring ahead of the Monetary Policy Committee meeting. Despite the current volatility, some analysts believe the market will continue to gain momentum and be uptrending, calling for a big rally due to the lack of triggers.