Stock Market Recovers After Volatile Trading on First Day Post Eid Holidays

The Pakistan Stock Exchange (PSX) saw some volatility on the first trading day after the Eid holidays but managed to stabilize by the end of the session. The benchmark KSE-100 Index regained the 118,000-point mark, rising by 226 points to trade at 118,000 points.

Initially, the market witnessed a negative trend due to concerns over global economic factors, particularly after US President Donald Trump imposed retaliatory tariffs on Pakistan and over 180 other countries. This move created uncertainty in the global trade environment, impacting investor sentiment.

There was significant selling pressure in major sectors, including oil and gas marketing companies (OMCs), power generation, refineries, cement, and banking. Shares of large companies such as MEBL, OGDC, PPL, Hubco, PSO, and SNGPL experienced declines.

The market turbulence was further fueled by President Trump’s announcement on Wednesday, imposing 10% tariffs on global imports and additional severe tariffs on key trading partners, which raised concerns about a potential trade war and its impact on global markets.