PSX climbs 1.79pc to close at 116,189 after tariff pause

KARACHI: Pakistan Stock Exchange (PSX) rebounded and closed in the green, aligning with the global markets after the US President announced a 90 day pause on reciprocal tariffs, analysts said on Thursday. 

Encouraged by a 90-day tariff pause, the benchmark index gained 2036 points or (1.79%) closing at the 116,189 level.

Investors responded positively, taking positions in anticipation of potential improvement in the overall economic landscape and likelihood of easing trade tensions, Ismail Iqbal Securities research note stated.   

The upward trajectory was fueled by a strong rebound in US and other international equity markets with the index rallying as much as 3,331 points during the intraday trading.

“The market has become increasingly unpredictable, resembling a rollercoaster ride or a boat sailing on rough seas, due to the ongoing tariff war initiated by the United States,” Muhammad Rizwan Khan, Director Chase Securities told Hum News English.

 The index gained points, driven by the strong performance of key stocks such as HUBC (156 points), OGDC (132 points), LUCKY (118 points), and UBL (114 points), which are the major contributors to the market’s gains, Chase Securities note stated.

Looking forward, the anticipated cut in the fuel prices, coupled with the recent decline in electricity prices, is likely to lead to lower inflation. This in turn, may prompt a decrease in interest rates, which can boost investor sentiment towards cynical stocks such as cement and consumer appliances, Rizwan Khan observed.

This positive sentiment was evident in the performance of Pak Electron, which closed at its upper circuit, indicating strong investor interest and demand for the stock, Khan added. .

The trading activity remained robust, with a total of 638 million shares changing hands and a market turnover of Rs 37 billion. CNERGY emerged as the volume leader, with 86 million shares traded.