Bears return to PSX after mild recovery as global crisis deepens
Business
KSE-100 index closed at 114,153 mark after losing 1,379 points on Wednesday
KARACHI (Dunya News) – The Pakistan Stock Exchange (PSX) on Wednesday faced another sharp downturn after losing more than 2,500 points.
The market opened in the negative zone and during the early morning trading session, the KSE-100 index touched 112,891 points mark.
However, after a bearish trend, the PSX recovered slightly and at 11am it was at 113,739.57 points with -1,792.86 (-1.55%).
Also read: PSX finds its feet after historic bloodbath amid global tariff war
Later in the day, the situation again reversed and the key index eventually closed at 114,153 mark after losing 1,379 points.
TRUMP'S NEW TARIFF TAKES EFFECT
The situation at PSX was the result of fears of global trade war as Trump’s new tariffs took effect, with 104pc on Chinese goods.
Trump’s punishing tariffs on dozens of economies came into force on Wednesday, including 104pc in levies against Chinese goods, sending markets into a tailspin again as the devastating global trade war intensified.
Following the sweeping 10pc tariffs that took effect over the weekend, rates on imports to the United States from exporters like the European Union or Japan rose further at 12:01am (9:01am PKT) on Wednesday.
China - Washington’s top economic rival but also a major trading partner - is the hardest hit, with tariffs imposed on its products since Trump returned to the White House now reaching a staggering 104pc.
Trump said on Tuesday his government was working on “tailored deals” with trading partners, with the White House saying it would prioritise allies like Japan and South Korea.
Many business experts and economists question how quickly — if ever — this can take place, warning of higher inflation as the tariffs raise prices.
Trump said Tuesday the United States was “taking in almost $2 billion a day” from tariffs.
After trillions in equity value were wiped off global bourses in the last days, markets in Asia came under pressure again on Wednesday, with Hong Kong plunging more than 3pc and Japan’s Nikkei sinking 2.7pc.
The markets accelerated their losses as the new tariffs came into effect, with Taiwan stocks closing down 5.8pc in the afternoon.
Ahead of European markets’ open, stock futures were also indicating steep drops ahead.
US DOLLAR
On the other hand, the US dollar shed 13 paisas against Pakistani rupee in the interbank market, from Rs280.73 to Rs280.60.
A day after historic intra-day plunge of 8,688 points triggered by imposition of tariffs by the United States amid fears of global recession, the Pakistan Stock Exchange (PSX) started to find its feet again as it gained more than 1,600 points on Tuesday.
