The capital market regained momentum on Thursday, rebounding from the previous session’s losses as investor sentiment improved after US President Donald Trump announced a pause on crippling tariffs imposed on America’s trade partners.
“The pause in tariffs for 90 days has created space for countries to go and negotiate,” Ahfaz Mustafa, CEO of Ismail Iqbal Securities, told Geo.tv.
"This has calmed markets and the volatility has subsided. Share prices are recovering in line with new expectations."
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at 116,189.21, gaining 2,036.06 points, or 1.78%, from the previous close of 114,153.15. The index touched an intraday high of 117,484.16, up 3,331.01 points, or 2.92%, while the day’s low stood at 116,130.90, still up 1,977.75 points, or 1.73%.
Trump’s announcement on Wednesday marked an abrupt shift in his global trade stance.
While he extended an olive branch to most countries by pausing tariffs, he intensified the economic confrontation with China by raising duties on Beijing’s exports to 125%.
In response, Asian markets soared. Chinese stocks largely brushed off the escalation, with investors across the region welcoming the breathing room provided by the tariff moratorium.
Wall Street stocks had also rallied, helping set the stage for Thursday’s positive sentiment in regional bourses.
The recovery followed a sharp decline, when the index had tumbled by 1,379.28 points, -1.19%, amid concern over global trade tensions.