Pakistan’s stock market staged a strong improvement on Tuesday, as the Benchmark KSE-100 index rose 1609.39 points, or 1.4%, to reach 116,518.87 under trade within day.
The market rebound from Monday’s sharp fall, with intraday heights reaching 116,692.29 and low touching 115,706.47. The volume amounted to over 110.7 million shares, while the value of traded shares crossed RS12 billion.
On Monday, the KSE-100 was closed at 114,909.48 after a steep fall of 3,882 point, triggered by global economic concerns after new tariffs were introduced by US President Donald Trump.
The KSE-100 index was facing a carnage on Monday, with Pakistan Stock Exchange (PSX) mirroring escalating global merchant stresses and fears of a global recession.
When US President Donald Trump refused to settle from his customs plans, retaliatory movements from China triggered fear of a wider trade war, causing the markets to throw around the world.
Asian stock markets took a nasal dive, European shares crashed to a 16-month low, and oil prices sank as investors were concerned that the tasks that Trump announced last week could lead to higher prices, weaker demand and potentially trigger a global recession.
Goldman Sachs along with other major investment banks have raised the odds of a US recession to 45% over the next 12 months.
JP Morgan economists estimated that customs can push the US economy into a 0.3% contraction, from their previous estimates of 1.3% growth of GDP.
In a talk about the case, Trump commented, “I don’t want anything to go down. But sometimes you have to take medication to fix something.”
World leaders responded to the news of confusion with China, the world’s # 2 economy, referring to customs as “financial bullying.”
