PSX Soars
The capital market in Pakistan opened with strong momentum on Thursday, rebounding from the previous day’s losses. This sharp recovery was largely driven by a significant improvement in investor sentiment following the announcement by U.S. President Donald Trump to pause the implementation of crippling tariffs on American trade partners.
The decision sparked a wave of optimism across global markets, which quickly spread to the Pakistan Stock Exchange (PSX).
The PSX’s benchmark KSE-100 Index surged to an intraday high of 117,484.16, reflecting a notable gain of 3,331.01 points, or 2.92%, from the previous day’s closing level of 114,153.15. This marked a significant turnaround from the losses seen in the prior session, with investors seemingly embracing the positive impact of Trump’s tariff pause on global trade dynamics.
However, despite the strong rally, the lowest level for the index during the session was recorded at 116,452.12, still maintaining a healthy gain of 2,298.97 points, or 2.01%.
The market’s positive reaction highlighted the broader relief that financial markets around the world felt due to Trump’s tariff relief announcement.
Tariffs had been a major source of tension in global trade, and the temporary halt in their escalation was seen as a constructive step toward easing trade tensions, especially between the U.S. and several key trading nations.
Local investors were quick to respond to the improved global outlook, as evidenced by the significant uptick in the KSE-100 Index.
The renewed market optimism also followed a broader trend seen in global stock markets, where indices surged as hopes for a de-escalation of the trade war between the U.S. and its major trading partners grew.
The positive momentum in the capital market on Thursday not only offered relief to investors but also reflected a broader confidence that the global economic outlook might stabilize, at least in the short term, after the trade conflict.
As a result, the PSX’s sharp rebound on Thursday provided a glimpse of hope that the market may continue to see gains, should these positive global developments continue to unfold.
