KARACHI: The Pakistan Stock Exchange (PSX) fell sharply in the outgoing week amid rising uncertainty over tariffs from the Trump administration, increasing concerns about a global economic slowdown.

Last Thursday, the PSX hit an alltime high near 119,000, in sharp contrast to reeling global markets following the `Liberation Day` reciprocal tariffs imposed by US President Donald Trump the previous day.

Pakistani shares delivered a robust performance on the back of some domestic triggers, including a sharp deceleration in inflation and the long-awaited cut in electricity prices for residential and industrial consumers.

After showing some resistance over the two working days postEidul Fitr, equities fell like ninepinson Monday, dropping 8,688 points or 7.3 per cent intraday (the highest point-wise single-day loss), the quantum of losses suggesting that the downturn was not merely due to the global rout.

It was also driven by economic weaknesses such as a depreciating rupee, falling foreign exchange reserves and continuous contractions in large-scale manufacturing, which turned investors jittery leading to panic selling.

Arif Habib Ltd (AHL) said the market began the week under extreme selling pressure, mirroring global market trends. Crude oil slid to $57.04 per barrel, the lowest since Feb 8, 2021. The global selloff was driven by concerns over the imposition of reciprocal tariffs on 60 countries last week, with China facing the highest hike. However, President Trump`s decision to pause tariffs above10pefor90 daystoward the latter half of the week provided some relief on the following day.

Locally, optimism grew as Pakistan hosted a mineral mining conference,attractingforeigninvestors from the US, UK, Australia, and Saudi Arabia. Adding to the sentiment, National Resources Ltd (Lucky Cement, Fatima Fertiliser, and Liberty Mills hold a 33pc stake each) announced the discovery of copper, gold, and silver in Chagai, Balochistan.

Besides this, Mari Energies also gained attention amid a substantial fourth discovery at Spinwam well, reporting 70mmefd gas and 310bpd condensate.

According to AKD Securities Ltd, the market remained highly volatile throughout the week, with investors reacting to the US imposing reciprocal tariffs on all the countries, including 29pc on Pakistani goods.However, with the Trump`s U-turn, the KSE-100 index posted an opening of 2,941 points (up 2.58pc) on Thursday. The last day of the week again saw a bearish session due to the escalation of the dispute as China retaliated with 125pc duty on US goods.

This eroded investor confidence, causing the KSE-100 index to fall by 3,938 points or 3.32pc to settle at 114,853.33 points week-on-week.

The Asian Development Bank revised Pakistan`s economic growth forecast to 2.5pc for FY25 and pc for FY26 and inflation to 6.0pc and 5.8pc, respectively.

According to AHL, sector-wise negative contributions came from banks (1,399 points), fertiliser (875 points), E&P (619 points), technology (261 points), and power (204 points). Meanwhile, the sectors that contributed positively were cement (293 points), pharmaceuticals (60points), glass (50 points), automobile assembler (35 points), and cable and electricalgoods (33 points).

Scrip-wise negative contributors were United Bank Ltd (666 points), Engro Fertiliser (466 points), Fauji Fertiliser Company (409 points), Pakistan Petroleum Ltd (358 points), and Oil and Gas Development Company (310 points). Scrip-wise positive contributions came from Lucky Cement (293 points), Mari Energies (137 points), GlaxoSmithKline Pakistan Ltd (62 points), and Sazgar Engineering Works Ltd (39 points).

Foreigner selling clocked in at $9.9m compared to a net buy of $7.4m last week. Major selling was witnessed in banks ($6.2m), followed by all other sectors ($2.3m).

On the local front, selling was reported by mutual funds ($13.6m) and individuals ($4.5m).

The average trading volume rose14pc to 557m shares, and the traded value jumpe d 8pc to $123m weekonweek.

According to AHL, the market will likely stay positive thanks to a 90-day pause in reciprocal tariffs coupled with an ongoing declining trend in commodity prices; both will provide a breather to the index.

Moreover, the result season will commence next week, and certain scrips are expected to be in the limelight.

The KSE-100 index is trading at a price-to-earnings ratio of 6.2x compared to its 10-year average of 8.0x, offering a dividend yield of 8.3pc compared to its 10-year average of 6.5pc.

Lower oil prices and favourable standing among exporting peers amid reciprocal tariffs would support the economy and strengthen our outlook for a return to singledigit interest rates in CY25.