After observing buying momentum in the initial hours of trading, profit-taking returned to the Pakistan Stock Exchange (PSX), pushing the benchmark KSE-100 Index down by over 400 points during intra-day trading.
Earlier in the day, the stocks rebounded after yesterday’s sell-off, mirroring global markets, and lifting the benchmark index to an intra-day high of 113,649.07.
However profit-taking wiped out all the intra-day gains, and by 1:20pm, the benchmark index was hovering around 112,333.60 level, a decrease of 411.41 points or 0.36%.
Experts attributed Monday’s sharp decline to a reflection of the global market sell-off, rattled by US President Donald Trump imposing hefty import duties on Canada, Mexico and China.
On Monday, the KSE-100 Index settled at 112,745.01, down by 1,510.72 points or 1.32%.
“However, he relaxed it for Mexico overnight – hence global markets have recovered today (US equity market closed positively last night),” said Intermarket Securities in a note.
“We expect the Pakistan market to also rebound today, but it is likely to remain range-bound in the near term given the lack of new positive triggers and fresh liquidity.
“Macro news out of Pakistan remains positive – with CPI for January coming in at a near 10-year low of 2.4% and goods trade deficit improved slightly MoM. Pakistan and Saudi Arabia have agreed on a deferred oil payment scheme worth $1.6 billion,” it added.
Globally, Hong Kong shares hit two-month highs, US equity futures rose and currencies swung to and fro in big ranges as investors scrambled to keep up with sudden changes in US trade policy.
S&P 500 futures were up 0.4% on Tuesday and the dollar reversed gains on Mexico’s peso and the Canadian dollar after promises to increase border enforcement prompted US President Donald Trump to suspend imminent tariffs.
Hong Kong’s Hang Seng was up 2.5%, even though an additional 10% tariff was due to hit Chinese goods from 0501 GMT, with electric vehicle makers leading the charge.
European equity futures rose by a more cautious 0.2%. Oil, which had jumped, slipped, and at $75.46 Brent crude futures were near to a one-month low.
Bitcoin which had sunk close to $91,000 a day earlier, traded around $102,000.
Australian shares advanced 0.4% and Japanese stocks rose 1.7%, though gains were smaller than Monday’s losses as trade-war fears swept financial markets.
Trump’s press secretary said he will speak with Chinese President Xi Jinping in a couple of days.
Chinese markets remain shut for the Lunar New Year break.
This is an intra-day update
Source: Brecorder
