Pakistan stocks decline as volatility grips market

Pakistani stocks faced significant pressure Tuesday, as mounting uncertainty over potential U.S. tariff measures and escalating political instability weighed on investor sentiment.

The benchmark KSE-100 index saw substantial intraday volatility during the session. Despite a modest recovery late in the day, the index closed down 1.19%, according to Topline Securities.

“Market uncertainty was fueled by the ripple effect of global financial market concerns, driven by fears of U.S. tariffs,” an analyst at Topline Securities said.

Adding to the tension, Muhammad Hasan Ather, an analyst at JS Global Capital, attributed the downturn to rising political uncertainty and apprehension over economic reforms.

“The market breached several psychological thresholds, amplifying investor anxiety. The trajectory of the local bourse will remain volatile until greater clarity emerges on both political and economic fronts,” Ather said.

The session mirrored negative trends in international equity markets, as investors grappled with broader global uncertainties.

KSE-100 index declined 1.19% or 1,379.28 points to close at 114,153.16 points.

Currency

US dollar steadied against PKR in the inter-bank market. Pakistani currency lost 8 paisas to close at 280.78. In the open market USD was trading at PKR 282.

Indian Stocks

BSE-100 index lost 0.52% or 122.30 points to close at 23,459.53 points.

DFM General Index gained 0.05% or 2.55 points to close at 4,892.88 points.

Crude Oil

Oil prices sank to four-year lows Wednesday after China unveiled heightened tariffs on U.S. goods in response to President Donald Trump's trade measures.

Starting Thursday, China will raise tariffs on U.S. imports to 84%, up from the previously planned 34%, the finance ministry said.

Trump's 104% tariffs on Chinese goods took effect at 12:01 a.m. EDT (0401 GMT) Wednesday, adding 50% to previous tariffs after Beijing did not remove its initial retaliatory measures.

Brent crude prices decreased by 3.45% to $60.65 per barrel.

Gold Prices

Gold prices rose over 2% Wednesday, bolstered by a weaker dollar and increased safe-haven demand as U.S.-China trade tensions intensified following Beijing's announcement of additional tariffs on American goods.

International gold prices increased 3.21% to close at $ 3,076.32 per ounce. In the local market, gold prices surged by PKR 3,000 to 321,000 per tola.