Karachi, April 7
Pakistan Stock Exchange (PSX) nosedived Monday even as the trading was temporarily suspended for one hour to cool off market volatility and prevent panic selling. However, despite the one-hour gap, the market reopened only to fall further as US-imposed tariffs and China's retaliatory moves on goods triggered tensions in global markets.
Pakistan's stock market KSE-100 index crashed by over 6,000 points on Monday, despite the one-hour suspension of trading. The fall is being said to be one of the sharpest single-day declines in PSX history. Investors are fearful over deepening geopolitical and economic uncertainty, according to market experts.
The decline in the Pakistani stock exchange is a proportionate impact triggered by the nosedive of the Asian markets due to escalating trade tensions between the United States and China. This latest drop is being termed a record day-to-day decline, with experts suggesting that investors have fled the market due to fears of a global recession.
"Traders are nervously watching the two biggest economies going toe to toe on tariffs and are fearing that both could receive knockout blows from a prolonged economic fight," said Tim Waterer, Chief Market Analyst at KCM Trade.
The Asian and other global markets also witnessed a major fall on Monday as the US-China trade war rattled investor confidence. Japan's Nikkei index fell over eight percent after opening, while Topix dropped by more than 6.5 percent. In China, the Shanghai Composite fell by at least 6.7 percent, and Blue Chip CSI300 dropped by 7 percent. In Hong Kong, the market opened at a 9 percent low, with tech giants like Alibaba and Tencent also suffering massive losses.
The sell-off followed a fierce retaliation from China, which imposed sweeping 34 percent tariffs on all US goods. This move came in response to US President Donald Trump's sudden hike in trade duties, sparking fears of a prolonged and damaging economic conflict.
- IANS