The Pakistan Stock Exchange (PSX) experienced a turbulent trading day on Tuesday, as the KSE-100 Index fluctuated sharply before ending with a loss of over 550 points. The session began on a strong note, with the benchmark index reaching a fresh intra-day peak of 137,747.60. However, the momentum faded in the latter half of the day due to profit-taking, which reversed earlier gains and pulled the index down to an intra-day low of 135,826.40.
Ultimately, the KSE-100 closed at 135,939.87, marking a decline of 562.66 points, or 0.41%. This contrasted sharply with the performance on Monday, when the index had staged a significant rally. On that day, the market surged by 2,203 points—or 1.64%—closing at a new record high of 136,502.54. The upward movement was fueled by robust institutional buying and increasing investor optimism.
Meanwhile, in international markets, Asian equities made modest gains while the US dollar maintained its strength. Investors kept a close eye on ongoing trade negotiations, as the week promised key US inflation data and major corporate earnings announcements. The MSCI Asia-Pacific index (excluding Japan) rose 0.4%, and Japan’s Nikkei added 0.2%. US markets, by comparison, ended their previous session with slight upticks.
Adding to the global uncertainty, oil prices slipped following US President Donald Trump’s warning that Russia must end the war in Ukraine within 50 days or face energy-related sanctions. In bond markets, Japanese government yields climbed to multi-decade highs ahead of a crucial upper house election.
Trade tensions remained in the spotlight, with Trump signaling potential flexibility on tariffs after his recent threats to impose 30% duties on goods from the European Union and Mexico starting August 1. The European Union responded by accusing the US of stalling negotiations and warned of retaliatory measures should talks fail.
Both Shigeru Ishiba, the Japanese PM has one upcoming British development, as he is meeting US Treasury Secretary Scott Bessent in Tokyo on Friday. This top-level negotiation is anticipated to be held at a time just before the impending deadline of 1 st August when the proposed 25% tariffs are to be implemented. According to National Australia Bank strategist Rodrigo Catril, market reaction to the uncertainty posed by tariffs has been relatively muted and further attention was on upcoming US corporate earnings to guide market trends.
