Volatility gripped the Pakistan Stock Exchange (PSX) on Friday, mirroring global market jitters as escalating trade tensions between the United States and China triggered widespread investor caution. The benchmark KSE-100 Index witnessed a sharp decline of 1,335 points, closing the day at 114,853 — marking a 1.16% drop from the previous session.
The market downturn comes in the wake of China’s latest retaliatory move in the ongoing trade war, which saw the imposition of a staggering 125% tariff on a wide range of U.S. goods. This escalation has sent shockwaves through global equity markets, and the PSX was no exception, with sentiment turning sharply negative across sectors.
Trading activity on the PSX also showed signs of reduced investor participation. A total of 458.5 million shares changed hands, a significant drop from the 638 million shares traded during the previous session. The total traded value also declined, falling to Rs. 31.62 billion from Rs. 36.92 billion a day earlier — a reflection of the subdued market momentum.
Market breadth remained weak throughout the session. Out of the 441 companies that traded on Friday, only 137 closed with gains, while 244 ended in the red. The share prices of 60 companies remained unchanged, further highlighting the cautious approach of market participants.
According to a market report issued by Topline Securities, some of the biggest drags on the index came from major players such as United Bank Limited (UBL), Fauji Fertilizer Company (FFC), Engro Fertilizers (EFERT), Engro Corporation (ENGROH), and Mari Petroleum Company Limited (MARI). These five companies alone contributed a combined -837 points to the index’s losses.
In terms of traded value, Kohat Cement (KOHC) led the charts with a turnover of Rs. 2.36 billion. Other notable contributors included GlaxoSmithKline (GLAXO) with Rs. 1.92 billion, Pak Elektron Limited (PAEL) with Rs. 1.88 billion, Honda Atlas Cars (HCAR) with Rs. 1.54 billion, Mari Petroleum (MARI) with Rs. 1.36 billion, and The Searle Company (SEARL) with Rs. 1.24 billion.
Analysts believe that the current wave of selling pressure is largely driven by external macroeconomic concerns, particularly those stemming from the global trade environment. With investor sentiment already fragile due to rising geopolitical uncertainty and inflationary pressures, the new tariffs by China have only intensified fears of a broader economic slowdown.
Market watchers are now looking to upcoming economic data releases and policy signals from global central banks for further direction. Until there is clarity on the US-China trade front, volatility is expected to remain a dominant theme in emerging markets like Pakistan.
The PSX, which had shown signs of recovery in previous sessions, now faces renewed pressure as global factors outweigh local fundamentals. Investors are advised to stay cautious, monitor developments closely, and adopt a long-term view amidst short-term market disruptions.