The capital market opened with strong momentum on Thursday, rebounding from the previous session’s losses as investor sentiment improved after US President Donald Trump announced a pause on crippling tariffs imposed on America’s trade partners.
The rebound follows global market turmoil in response to fears that the trade war between the United States and China would escalate.
The benchmark KSE-100 index opened on a highly positive note, gaining 3,331.01 points, or 2.92 per cent, to reach 112,891.48 at 9:33am from the previous close of 114,153.15.
However, soon, the shares witnessed a sharp fall and went as low as 116,452.12 and remained below 117,000 till 11am — still trading in green.
At 11:05am, the index had gained 2,620.97 points, or 2.30pc, to reach 116,774.12 from yesterday’s close.
Trump’s sudden reversal of tariffs came less than 24 hours after steep new tariffs kicked in on imports from dozens of trading partners. The new trade barriers have hammered markets, raised the odds of recession and prompted retaliatory responses from China and the European Union.
Trump said he would raise the tariff on Chinese imports to 125pc from the 104pc level that took effect at Wednesday midnight. At the same time, he said he would lower them on other countries also subject to his new targeted duties.
