PSX closes in red as global markets tumble over US-China trade war

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a decline on Friday, losing 1,335 points of (1.15%) closing at 114,853 level amid escalating global trade tensions and plummeting oil prices, analysts said.

The market expected to remain cautious heading into the weekend as investors closely monitor global trade developments and oil prices movements, said Mohammad Rizwan, Director at Chase Securities.

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“Rupee instability, and 9 percent YoY declining dismal data on cement sales for March 25 played a catalyst role in bearish close at the PSX on Friday,” Ahsan Mehanti told Hum News English.

The market trading volume stood at 587 million shares, with a total value of PKR 40 billion.

The energy sector was under pressure, with lower international oil prices resulting in a decline in stocks, including PPL, OGDC, MARI, and POL, which fell by 1.5%, 2.2%, 1.8%, and 2.5%, respectively, Chase Securities research note stated.

Fertilizer stocks declined in today’s session, tracking weak sales numbers for the month and concerns about the agricultural economy, which raised investor concerns about the outlook of the fertilizer sector.

Pharmaceutical stocks are in the spotlight, with investors anticipating a significant drop in API volumes from China to the US due to the imposition of tariffs, which is expected to reduce API prices from China, resulting in increased margins and a 2-7% surge in the sector today, Chase Securities note added.

Traded value wise KOHC (Rs 2.36 billion), GLAXO (Rs 1.92 billion), PAEL (Rs 1.88 billion), HCAR (Rs 1.54 billion), MARI (Rs 1.36 billion), and SEARL (Rs 1.24 billion) dominated the trading activity.

Among other important developments today, HCAR PA in a notice to the PSX announced that the company is planning to introduce Hybrid Electric Vehicle (HEV) models in the near future.