The Pakistan Stock Exchange (PSX) saw a sharp decline on Monday as the Benchmark’s SE -100 index fell by more than 3,000 points during the initial trade hours.
The index declined 115,488.18, which reflects a decrease of 3,303.48 points, or 2.78 %. He touched the height of 117,601.62, which is still nearly 1,190.04 points (1.00 %) less than 118,791.66.
Economists have “feared investors that the increase in tariffs could lead to global recession through weak demand.”
“We are confident that as the imported economy of imports, we will benefit from the implementation of US prices due to a possible decline in global commodity prices,” he added.
He said, “Infectious – markets are widespread in fear of global recession.
“However, the KSE -100 index has only decreased 2.5 pcs -this is relatively modest reduction compared to other regional markets,” he said.
Economists noted that the pressure on oil and banking stock is noteworthy.
“Low oil prices are expected to have a negative impact on the earnings for oil companies,” he said, at the same time, textile exporters, “may be facing leadership from new US prices,” he said.
Economists added, “Although these prices possess short-term risks, especially for the textile sector, the overall impact of US trade policy can be neutral to Pakistan-especially if commodity prices are low.”
In the short term, he remarked that the effects of both direct and indirect (first and second phase) could face profitable challenges.
“However, low commodity prices globally can help reduce inflation pressure, which will potentially reduce interest rates,” he said. “As a result, prices can help gradually recover.”
On the role of the government, he emphasized that the federal government would “have to move fast and start talks to eliminate revenue from Pakistani products.”
