PSX bounces back with full power

KARACHI: The Pakistan Stock Exchange (PSX) opened trading on Thursday with an almost instant 3,000 points gains. Moments into trading, the benchmark KSE-100 index jumped from yesterday’s closing of 114,153.15 points to 117,484.16 points.

Some of these sharp gains dissipated as quickly as they accumulated, but the market still managed to trade over 2,000 points above the opening level. Pakistan’s capital market has reacted to US President Donald Trump’s announcement in a similar manner to the global markets. Asian, NYSE and NASDAQ stocks all rebounded after Trump announced a temporary halt in the recently imposed tariffs.

Pakistan Stock Exchange closes in red amid global tariff tensions

While the global economy is reacting to these tariffs from a perspective of a potential recession, for Pakistan there are two simultaneous impacts. With trade barriers in place, the country’s external account might get a negative hit. However, with the lower oil prices brought on by these tariffs can help with the energy economy of Pakistan.

PSX closed yesterday’s session in the red, after posting some recovery earlier in the day. But a bigger impact on investor confidence was brought on by the volatility. This effect was partially offset by the hopes from recent minerals conference and potential foreign direct investment in Pakistan.

Around 10:30 AM, the index was trading with 2,500 points in the green: