PSX recovers slightly after losing over 8,000 points in a day amid global 'carnage'
Business
Stocks nosedive 8,235.88 points to drop to 110,555.78 points during intraday trading
KARACHI (Dunya News) – The Pakistan Stock Exchange (PSX) faced one of the toughest days in its history as the key index lost more than 8,000 points on Monday amid bloodbath in global markets.
Trading was suspended when the KSE-100 index lost more than 6,000 point around midday. At 3 pm, the index was at 114,652.39 after recovering 4,000 points.
The trend coincides with global markets crash amid ongoing tariff war. This is said to be the worst day in the history of PSX, which has seen the all-time worst slump in a day.
The KSE-100 index lost 8,235.88 or -6.93% to 110,555.78 - one of the steepest single-day drops - when trading was stopped.
Earlier in the morning session, the PSX was hit by bearish trend as the KSE-100 index plunged more than 3,000 points amid global stocks crash.
The market opened at 117,601.62 but fell steadily with more than 147 million shares exchanging hands. Around 11:30am, the benchmark KSE-100 index plunged by 4,411.07 points, or 3.71%, to reach 114,380.59.
The KSE-100 index somewhat recovered and closed at 114,909 after regaining thousands of points.
On Friday, the 100 index turned around to bearish trend after hitting the record high of 120,796.67 points. However, it retreated later losing 146.45 points and closing at 118,791.66 points.
A total of 553,668,391 shares were traded during the day whereas the price of shares stood at Rs35.492 billion.
As many as 457 companies had transacted their shares in the stock market, 151 of them recorded gains and 258 sustained losses, whereas the share price of 48 companies remained unchanged.
SAUDI STOCK MARKET
On the other hand, the Saudi stock market has crashed due to the impact of US tariffs and the decline in oil prices, resulting in a loss of 500 billion riyals.
The Saudi benchmark TASI index closed down by 700 points at 11,200. The oil company Aramco incurred a loss of 340 billion riyals in terms of share value, and the Saudi National Bank, along with other major companies, also suffered significant losses.
Meanwhile, major stock indexes plunged in Asia on Monday as US President Donald Trump showed no sign of backing away from his sweeping tariff plans, and investors bet the mounting risk of recession could see the Federal Reserve cutting rates as early as May.
Futures markets moved swiftly to price in almost five quarter-point cuts in U.S. rates this year, pulling Treasury yields down sharply and hampering the dollar on safe havens.
ASIAN STOCKS
Reuters reports US President Donald Trump warned foreign governments they would have to pay "a lot of money" to lift sweeping tariffs, characterising the duties as "medicine" and triggering further carnage across global financial markets on Monday.
Asian stocks posted steep losses in early trading and US stock market futures opened sharply lower as investors registered concerns that Trump's tariffs could lead to higher prices, weaker demand, lower confidence and potentially a global recession.
Speaking to reporters aboard Air Force One on Sunday, Trump indicated he was not concerned about losses that have already wiped out trillions of dollars in value from share markets around the world.
"I don't want anything to go down. But sometimes you have to take medicine to fix something," he said as he returned from a weekend of golf in Florida.
Trump said he had spoken to leaders from Europe and Asia over the weekend, who hope to convince him to lower tariffs as high as 50% due to take effect this week.
"They are coming to the table. They want to talk but there’s no talk unless they pay us a lot of money on a yearly basis," Trump said.
Trump's tariff announcement last week jolted economies around the world, triggering retaliatory levies from China and sparking fears of a global trade war and recession.
Japan, one of Washington's closest allies in Asia, is among countries hoping to strike some deal but its leader Shigeru Ishiba said on Monday results "won't come overnight".
Investors, however, are not hanging around.
As Ishiba spoke in parliament, Tokyo's Nikkei cratered to a 1-1/2-year low, led by stocks in the country's banks – some of the biggest lenders by assets globally – which have shed almost a quarter of their market value over the last three trading days.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu said he would seek a reprieve from a 17% tariff on the country's goods during a planned meeting with Trump on Monday.
An Indian government official told Reuters the country does not plan to retaliate against a 26% tariff and said talks were under way with the US over a possible deal.
In Italy, Prime Minister Giorgia Meloni – a Trump ally – pledged on Sunday to shield businesses that suffered damage from a planned 20% tariff on goods from the European Union.
