Negative Sentiment Dominates PSX as KSE-100 Drops Over 650 Points Amid Budget Fears
The Pakistan Stock Exchange (PSX) experienced significant selling pressure on Monday, with the benchmark KSE-100 Index plunging more than 650 points during intra-day trading. By 3 pm, the index stood at 118,452.30, down 650.37 points or 0.55%.
Key sectors including automobile assemblers, oil and gas exploration, oil marketing companies (OMCs), and power generation faced steep selling, dragging major index contributors such as HUBCO, OGDC, PPL, POL, MARI, PSO, and SSGC into negative territory.
This downward movement follows a week marked by cautious investor sentiment as the market awaited the upcoming federal budget announcement. Concerns over proposed tax reforms have fueled sustained pressure on the PSX, driving the KSE-100 Index to a weekly decline of 546.47 points (0.45%), closing at 119,102.67 points compared to 119,649.14 points the previous week.
Global Markets Show Mixed Signals Amid Trade Negotiations
While the PSX struggled, Asian stock markets recorded modest gains on Monday, buoyed by a temporary easing of trade tensions. The euro rallied following a surprising extension by US President Donald Trump of his tariff threat deadline on European Union goods from June 1 to July 9. This delay comes after EU Commission President Ursula von der Leyen requested more time to finalize a trade agreement.
Trump’s latest tariff extension temporarily relieved markets following a sharp selloff last month, which was triggered by aggressive trade policies. Investors had been encouraged by fresh trade deals, including agreements with the UK and a temporary truce with China.
However, Trump’s unpredictable moves serve as a stark reminder of potential volatility ahead. Analysts note a shifting investment trend as funds flow out of the US toward Europe and Asia, factoring in the risks of a US recession and slowing global economic growth.
Notably, Apple Inc. found itself in the spotlight last Friday after Trump threatened to impose a 25% tariff on imported iPhones, escalating the trade conflict.
Monday’s trading saw MSCI’s broadest Asia-Pacific index outside Japan inch up 0.12%, with Japan’s Nikkei posting marginal gains.
