The Pakistan Stock Exchange (PSX) opened with a strong selling pressure, as the benchmark KSE-100 Index lost more than 2,500 points in the initial hours of trading on Thursday.
The KSE-100 recovered some of the losses, but was still down by 786 points on 11:00am.
It was hovering at 116,439.83, down from 117,226.15 it had closed at in the previous session.
A rise in tension between Pakistan and India might have taken its toll on the stock market.
On Wednesday, India stalled key water-sharing treaty named Indus Waters Treaty with Pakistan, following an attack on tourists that killed 26 men in Indian Illegally Occupied Jammu and Kashmir (IIOJK)’s Pahalgam area, for which New Delhi blamed Pakistan.
Globally, stocks drifted on Thursday and a rebound in the dollar lost traction as investors tried to sift through the noise from the Trump administration and its fickle stance on tariffs and the Federal Reserve’s leadership.
Just this week, U.S. President Donald Trump has rained attacks on Fed head Jerome Powell, then retracted calls for the chair’s resignation, and left investors none the wiser on the ultimate state of tariffs on China despite many headlines around it.
The Trump administration would look at lowering tariffs on imported Chinese goods pending talks with Beijing, a source told Reuters on Wednesday, after a Wall Street Journal report that the White House is considering cutting its tariffs on Chinese imports.
But Treasury Secretary Scott Bessent later said that such a move would not come unilaterally, echoing comments from White House spokesperson Karoline Leavitt.
This is intra-day update
