WEBDESK: The Pakistan Stock Exchange (PSX) witnessed a strong rebound on Thursday, gaining more than 2,500 points in a single day. This major PSX rebound came after an announcement from US President Donald Trump where he said he would ease tariffs for 90 days (except in China’s case).
The benchmark KSE-100 index shot up by over 3,300 points at the opening, reaching a high of 112,891 points. Although the index later fluctuated, the day still marked a major PSX rebound, restoring investor confidence.
Market experts believe the PSX rebound was triggered by relief in global markets. Investors were previously worried about rising trade tensions due to high U.S. tariffs, which affected markets worldwide, including Pakistan. Trump’s decision to ease some of those tariffs brought a sense of calm and the PSX rebound.
Awais Ashraf, research director at AKD Securities, noted that the pausing of tariffs on countries other than China has “made investors bullish on the KSE-100 index, as the focus now shifts back to improving macroeconomic fundamentals”.
“As an import-driven economy with significant oil dependence, making up 29%pc of the total import bill, the recent fall in oil prices bodes well for Pakistan, offering relief on both the external account and inflation fronts,” he said.
Trump’s sudden reversal of tariffs came less than 24 hours after steep new tariffs kicked in on imports from dozens of trading partners. Trump said he would raise the tariff on Chinese imports to 125pc from the 104pc level that took effect at Wednesday midnight. At the same time, he said he would lower them on other countries also subject to his new targeted duties.
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