Pakistan’s stock market took a hit due to global economic headwinds, with investor sentiment dampened by renewed concerns over trade dynamics and tariffs. The 90-day pause on US tariffs may have offered a temporary reprieve, but market participants remain vigilant, anticipating the trajectory of the IMF program, developments around the federal budget, and volatile international commodity prices. Ahsan Mehanti, analyst at Arif Habib Corp, pointed out that global bearish equities, a slump in global crude oil prices, and fears over the outcome of the US-China trade war were driving the early losses on Friday. Rupee instability and a 9% year-on-year decline in cement sales for March 2025 also played a significant role. Some key points to consider:

• Renewed concerns over global trade dynamics and tariffs are affecting investor sentiment.
• The 90-day pause on US tariffs may offer a temporary reprieve, but market participants remain vigilant.
• Global bearish equities, a slump in global crude oil prices, and fears over the US-China trade war are driving early losses on Friday.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index touched an intraday high of 115,937.38 points, down 251.83 points, or -0.22% from the previous close of 116,189.21. The session’s low was recorded at 114,701.32 points, reflecting a sharper drop of 1,487.89 points or -1.28%. A table showing the intraday highs and lows of the KSE-100 Index on Friday is as follows:

“While the 90-day pause on US tariffs offers a temporary reprieve, market participants remain vigilant. The trajectory of the IMF program, developments around the federal budget, and the volatile international commodity prices are poised to be critical determinants of market sentiments,” said Amreen Soorani, Head of Research at Al Meezan Investment. The situation is further complicated by the fact that a high-level Pakistani delegation is preparing to travel to Washington to renegotiate trade terms with the US government. Ahsan Mehanti, analyst at Arif Habib Corp, highlighted that rupee instability and a 9% year-on-year decline in cement sales for March 2025 played a significant role in driving the early losses on Friday. Some key points to consider:

• Rupee instability and a decline in cement sales are driving early losses on Friday.
• The situation is complicated by the fact that a high-level Pakistani delegation is preparing to travel to Washington to renegotiate trade terms with the US government.

According to a report released by Islamabad-based think tank Tabadlab, Pakistan could face an estimated export loss of $564 million in FY2025-26 due to steep new tariffs imposed by the United States. Ahsan Mehanti also pointed out that global bearish equities and a slump in global crude oil prices are driving the early losses on Friday. Some key points to consider:

• Global bearish equities and a slump in global crude oil prices are driving the early losses on Friday.
• The 90-day pause on US tariffs may offer a temporary reprieve, but market participants remain vigilant.

The Federal Board of Revenue (FBR) is preparing for critical discussions with the International Monetary Fund (IMF), with a technical mission set to arrive in Islamabad on April 14. The two sides are expected to explore proposals for broadening the tax base, including bringing untaxed sectors and higher pension brackets into the tax net, while the government eyes relief for the salaried class. On Thursday, the KSE-100 Index had rebounded strongly, rising 2,036.05 points or 1.78% to close at 116,189.21, boosted by a global rally triggered by Trump’s pause on tariffs. The day’s high reached 117,484.17, while the low stood at 116,130.9. Analysts warn that volatility is likely to persist in the coming sessions, with investors closely watching IMF talks, budgetary proposals, and any new developments on global trade.

“Pakistan’s stock market is facing a perfect storm of challenges. The global economic slowdown, rupee instability, and trade tensions are all taking their toll. We expect volatility to persist in the coming sessions, and investors should remain cautious,” said Ahsan Mehanti, analyst at Arif Habib Corp.

While the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index touched an intraday high of 115,937.38 points, down 251.83 points, or -0.22% from the previous close of 116,189.21, the session’s low was recorded at 114,701.32 points, reflecting a sharper drop of 1,487.89 points or -1.28%. The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index is a widely followed indicator of the country’s economic health. The index is composed of 100 companies listed on the PSX, representing a broad range of industries, including banking, energy, and technology. Key drivers of the early losses on Friday included:

1. Global bearish equities
2. A slump in global crude oil prices
3. Fears over the outcome of the US-China trade war
4. Rupee instability
5. A 9% year-on-year decline in cement sales for March 2025

The 90-day pause on US tariffs may have offered a temporary reprieve, but market participants remain vigilant, anticipating the trajectory of the IMF program, developments around the federal budget, and volatile international commodity prices. Amreen Soorani, Head of Research at Al Meezan Investment, highlighted that market participants remain vigilant, anticipating the trajectory of the IMF program, developments around the federal budget, and volatile international commodity prices. Ahsan Mehanti, analyst at Arif Habib Corp, pointed out that rupee instability and a decline in cement sales are driving the early losses on Friday. Pakistan could face an estimated export loss of $564 million in FY2025-26 due to steep new tariffs imposed by the United States, according to a report released by Islamabad-based think tank Tabadlab. Key Points to Remember:

• Pakistan’s stock market took a hit due to global economic headwinds, with investor sentiment dampened by renewed concerns over trade dynamics and tariffs.
• The 90-day pause on US tariffs may have offered a temporary reprieve, but market participants remain vigilant.
• Global bearish equities, a slump in global crude oil prices, and fears over the US-China trade war are driving early losses on Friday.
• Pakistan could face an estimated export loss of $564 million in FY2025-26 due to steep new tariffs imposed by the United States.
• Volatility is likely to persist in the coming sessions, with investors closely watching IMF talks, budgetary proposals, and any new developments on global trade.

Conclusion

Pakistan’s stock market is facing a challenging time, with a mix of domestic and international factors contributing to the volatility. As the situation continues to unfold, investors should remain cautious and keep a close eye on developments in the coming sessions.