By Staff Reporter
KARACHI: Pakistan’s stock market suffered a historic 8,000-point collapse in an intraday trade on Monday, battered by global fallout from China’s retaliatory tariffs on the US.
The Pakistan Stock Exchange’s benchmark KSE-100 Index plummeted 6,000 points early, triggering a one-hour trading halt, only to shed another 2,000 points after resuming.
By 11:58 a.m. local time, the KSE-100 had dropped 6,287.22 points, or 5.29 percent, to 112,504.44, tripping automatic circuit breakers meant to curb panic.
Post-halt, the sell-off intensified, with the index losing an additional 2,142.27 points, or 1.81 percent, in one hour of trade. The index was hovering at 110,362.17 by 1:45 pm local time. The index fell 8,429.49 points, or 7.1 percent, — the worst in the exchange’s history.
“The Trump tariffs and their ripple effects across U.S. and Asian markets are driving this uncertainty,” said analyst Mustafa Mustansir at brokerage Taurus Securities Limited.
Losses ripped across sectors—cement, banks, energy, and utilities all took hits. Index giants like Hub Power (HUBCO), Attock Refinery (ARL), Mari Petroleum (MARI), Oil & Gas Development (OGDC), Pakistan Petroleum (PPL), Pakistan Oilfields (POL), Pakistan State Oil (PSO), Sui Northern Gas (SNGPL), Sui Southern Gas (SSGC), and Habib Bank (HBL) ended deep in the red.
“The selloff ties straight to Trump’s tariff rhetoric and oil’s drop,” said Sana Tawfik, research head at Arif Habib Limited. “Still, earnings season could stem the bleed soon.”
Last week’s 1,000-point gain—fueled by upbeat economic signals—vanished in the rout.
Global markets echoed the panic. Trump doubled down on tariffs, paired with China’s 34 percent retaliatory levies on US goods starting April 10, crushed sentiment. Beijing also curbed exports of rare earths like gadolinium and yttrium, key for medical and tech industries.
Trump’s tariff gambit—unveiled last week—promised deals with trading partners. Instead, his weekend refusal to back off unless deficits shrink dashed hopes of a rethink, leaving markets reeling.
Oil piled on the pain, with Brent falling to $64.23 a barrel and U.S. crude to $60.60.
Analysts offered mixed takes seeing robust earnings as a potential lifeline, though global jitters could keep a lid on gains.
“Tariffs could spark a global recession via weaker demand,” said Awais Ashraf of AKD Securities. Yet he added, “As an import-driven economy, Pakistan might see a silver lining from lower commodity prices.”
Copyright © 2021 Independent Pakistan | All rights reserved
