Karachi, April 9, 2025 — The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Wednesday, as the benchmark KSE-100 index slumped by 1,379 points or 1.19%, closing at 114,153.16.
The fall was largely driven by escalating global trade tensions, particularly following fresh tariff measures introduced by the United States against China.
The KSE-100 index, which had closed at 115,532 a day earlier, faced strong selling pressure throughout the session. Analysts attributed the decline to widespread investor concern over deteriorating global trade relations, which have sparked risk-off sentiment across international markets. The impact has been clearly visible in the PSX, where the index reflected a cautious and jittery mood among investors.
Muhammad Rizwan, Director Brokerage at Chase Securities Pakistan (Pvt) Ltd., noted that the escalation in US-China trade tensions has negatively influenced regional and global markets. “The ripple effects of these tariffs have extended to emerging markets, and the PSX is reacting in line with global investor behavior,” he said.
The session remained dull with a noticeable dip in market activity. The KSE-100 index recorded a trading volume of 560 million shares, down from 666 million a day earlier. Meanwhile, the total trade value also dropped by 19.05% to PKR 34 billion, compared to PKR 42 billion on Tuesday.
Energy sector heavyweights OGDCL and PPL were among the top negative contributors, dragging the index down by 119 and 135 points, respectively. The continued slide in international oil prices has affected their share performance, leading to broader pressure on the KSE-100.
However, Rizwan highlighted a potential upside. “Falling oil and commodity prices, while impacting energy stocks, can aid Pakistan’s external position by narrowing the current account deficit and helping contain inflation,” he said. This shift could lead to more accommodative monetary policy, including possible interest rate cuts, ultimately reviving trade and investment interest in the PSX.
Despite the downturn, market watchers remain cautiously optimistic that stability may return to the KSE-100 index as the macroeconomic environment adjusts and global trade concerns eventually ease. Until then, traders are likely to remain vigilant, closely tracking both domestic indicators and international trade developments.