Bears take hold of PSX as shares decline 1,500 points on Trump’s trade war

Bears took hold of the trading floor on Monday at the Pakistan Stock Exchange (PSX) as shares proceeded to decline 1,500 points. The benchmark KSE-100 index declined 1178.46, or 1.03 per cent, to stand at 113,077.26 points at 12:50am from the last close of 114,255.72 points. Finally, the index closed at 112,745.01, down by 1510.71 or 1.32pc, from the last close. While talking to Dawn.com, Awais Ashraf, director research at AKD Securities, said, “Investors are concerned over the potential imposition of trade tariffs by Trump and the suspension of foreign aid.” “We anticipate that these tariffs will push US inflation higher while dampening economic growth, which could lead to a decline in commodity prices and higher for longer interest rates,” he said. On Pakistan’s import-driven economy, Ashraf highlighted that country was positioned “to gain from [the] declining commodity prices, while the suspension of foreign aid is expected to have a minimal impact on financial inflows”. Additionally, he said that he did not anticipate any special tariffs on the country’s exports “due to their limited scale and focus on essential goods”.