Pakistan stocks close lower amid global equities meltdown

Pakistan’s stock market closed lower Friday as rising global trade tensions and economic uncertainty weighed on investor sentiment.

Analysts said the intensifying trade dispute between the U.S. and China fueled volatility at the Pakistan Stock Exchange (PSX), with investors remaining cautious ahead of the weekend gap.

“Investors preferred to stay on the sidelines amid uncertainty over potential trade disruptions and tariff-related developments,” an analyst at Ismail Iqbal Securities said.

Ahsan Mehanti of Arif Habib Corp noted that the market saw sharp declines during earnings season, with weak global crude oil prices and bearish equities contributing to the downturn.

“Rupee instability and declining cement sales in March played a catalyst role in the bearish close at PSX,” Mehanti said.

Commercial banks, fertilizer firms, and oil and gas exploration companies were among the hardest-hit sectors, collectively pulling the index down by 1,063 points.

In other market developments, Honda Atlas Cars announced plans to introduce Hybrid Electric Vehicle (HEV) models in the near future, according to a notice issued to the exchange.

Analysts at Topline Securities said volatility is expected to persist as the trade war continues to exert pressure on the local bourse.

KSE-100 index shed 1.15% or 1,335.88 points to close at 114,853.33 points.

Currency

US dollar eased against PKR in the inter-bank market. Pakistani currency gained 9 paisas to close at 280.47. In the open market USD was trading at PKR 282.

Indian Stocks

Indian stock markets ended the week on a strong note Friday, buoyed by former U.S. President Donald Trump's decision to delay reciprocal tariffs on multiple countries, including India, for 90 days.

Analysts believe the unexpected tariff pause has offered a welcome relief amid prevailing uncertainty. They note that any progress in bilateral trade negotiations could significantly influence the short-term outlook for export-driven sectors.

BSE-100 index gained 1.84% or 430.96 points to close at 23,890.49 points.

DFM General Index lost 0.16% or 8.05 points to close at 4966.02 points.

Crude Oil

Oil prices remained steady on Friday but were poised for a second consecutive weekly decline, as investor worries over the escalating trade war between the United States and China continued to weigh on the market.

Analysts attribute the downturn to China's retaliatory measures, which include increased tariffs on U.S. goods, further dampening sentiment and pushing oil prices lower.

On Friday, China announced that it would raise tariffs on U.S. imports to 125% starting Saturday, a sharp increase from the previously planned 84%, following U.S. President Donald Trump's decision to hike tariffs on Chinese goods to 145% on Thursday.

Brent crude prices increased by 0.11% to $63.40 per barrel.

Gold Prices

Gold prices soared past $3,200 an ounce today for the first time, marking a rise of more than 22% this year. UBS and Commerzbank revised their gold price forecasts upwards on Friday, aligning with other investment banks as investors continue to push the safe-haven asset to record highs amid economic uncertainty linked to U.S. President Donald Trump's trade policies, according to a report.

Trump’s tariffs have disrupted financial markets, fueling concerns over inflation and a possible global recession. While most duties remain on hold, he has increased tariffs on China to 145%, prompting Beijing to raise its own tariffs on U.S. goods to 125%, Reuters reported.

Analysts anticipate that gold’s upward momentum will persist into next year, with prices expected to stabilize at elevated levels in the long term.

International gold prices increased 2.25% to close at $ 3,232.83 per ounce. In the local market, gold prices increased by PKR 10,000 to 338,800 per tola.