After an early surge, profit-taking was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index losing over 160 points on Monday.
Market commenced trading on a positive note, pushing the benchmark index to an intra-day high of 120,285.54.
At 1:55pm, the benchmark index was hovering at 119,431.85, a decrease of 217.29 points or 0.18%.
Analysts say that market participants remain cautious amid concerns surrounding the International Monetary Fund’s (IMF) 11 conditions tied to Pakistan’s upcoming federal budget.
Meanwhile, the IMF, in its latest report, has revised downward GDP growth for Pakistan to 2.6% for the outgoing fiscal year 2024-25 from the October projection of 3.2%, based on the weaker activity in the first half (H1) and broader global uncertainty.
During the previous week, the PSX experienced a strong rebound and recorded its highest week-on-week (WoW) gain in five years, following the announcement of a ceasefire between Pakistan and India, which fuelled a significant market rally.
The benchmark KSE-100 Index surged by 12,474 points, or 11.6% week-on-week (WoW), closing at 119,649 points up from 107,174.64 points in the previous week.
Internationally, Asian shares slipped on Monday as a mixed bag of Chinese economic data showed the domestic economy was struggling even as US tariffs began to bite into exports, while the White House kept up its rhetorical pressure on trade partners.
Wall Street share futures also slipped with the dollar, while Treasury yields rose as concerns about erratic US economic policies were underlined by Moody’s downgrade of the country’s credit rating.
Unease over the United States’ $36 trillion of debt has also mounted as Republicans seek to approve a sweeping package of tax cuts, which some estimate could add $3 trillion to $5 trillion in new debt over the next decade.
US Treasury Secretary Scott Bessent used television interviews on Sunday to dismiss the downgrade, while warning trade partners they would be hit with maximum tariffs if they did not offer deals in “good faith”.
Bessent is off to a G7 meeting this week for more talks, while US Vice President JD Vance and European Commission President Ursula von der Leyen met on Sunday to discuss trade.
The tariff war has weighed heavily on consumer sentiment and analysts will be scouring earnings from Home Depot and Target this week for an update on spending trends.
In markets, MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.2%, with Japan’s Nikkei down 0.6%.
Chinese blue chips eased 0.4% as retail sales missed forecasts for April, while industrial output slowed but not by as much as feared.
This is an intra-day update
American Dollar Exchange Rate