The 100-Index of the Pakistan Stock Exchange (PSX) turned around to bearish trend on Wednesday, losing 1,379.28 points, a negative change of 1.19 percent, closing at 114,153.16 points as compared to 115,532.43 points on the last trading day.
A total of 448,693,567 shares were traded during the day as compared to 530,694,779 shares the previous trading day, whereas the price of shares stood at Rs26.585 billion against Rs33.676 billion on the last trading day.
As many as 450 companies transacted their shares in the stock market, 118 of them recorded gains and 281 sustained losses, whereas the share price of 51 companies remained unchanged.
The three top trading companies were K-Electric Limited with 54,549,738 shares at Rs 4.21 per share, Cnergyico PK with 51,834,762 shares at Rs8.32 per share and PIA Holding Company 20,463,930 shares at Rs 18.80 per share.
Philip Morris (Pakistan) Limited witnessed a maximum increase of Rs 118.82 per share closing at Rs 1,307.02 whereas runner-up was PIA Holding Company LimitedB with Rs 97.76 rise in its share price to close at Rs 1,102.34.
Hoechst Pakistan Limited witnessed a maximum decrease of Rs 134.31 per share price, closing at Rs 3,055.69, whereas the runner-up was Services Industries Limited with Rs 60.23 decline in its per share price to Rs 923.40.
Separately, losses in European shares deepened on Wednesday as China more than doubled its tariffs on US goods hours after Washington announced a massive 104% levy on Beijing, escalating fears of severe economic damage from the trade war.
The pan-European STOXX 600 (.STOXX), opens new tab slumped 3.9% at 1151 GMT, as the previous session’s rally fizzled out. The trade-sensitive German benchmark index (.GDAXI), opens new tab fell 3.7%.
European Union countries are expected to approve later in the day the bloc’s first countermeasures against US President Donald Trump’s tariffs, joining China and Canada in retaliating after reciprocal tariffs of 20% on select EU goods took effect.
The tit-for-tat tariffs have unleashed a global market rout and concerns of a recession, causing forced selling of even safe-haven government bonds on Wednesday. The STOXX 600 is currently about 16.9% below its all-time closing high and nearing the 20% threshold that would confirm a bear market.
Rate-sensitive banks (.SX7P), opens new tab slumped 3.9% as traders fully priced in an interest rate cut from the European Central Bank next week to shore up the deteriorating economy.
European pharma giants Roche (ROG.S), opens new tab, Novartis (NOVN.S), opens new tab and Novo Nordisk (NOVOb.CO), opens new tab dropped between 6.5% and 7.8% after the American president reiterated plans for a “major” tariff on all pharmaceutical imports. Healthcare (.SXDP), opens new tab was down 5.9%.
Energy stocks (.SXEP), opens new tab slumped 5.4% as oil prices tumbled to their lowest in four years, while miners (.SXPP), opens new tab tanked 4.4% as the world’s top metals exporter China was hit with a massive 104% levy.
“China’s not going to back down so yes, it is going to lead to further escalation,” said Axel Rudolph, senior technical analyst at IG Group.
“I don’t think that the volatility is anywhere near over. I think that we may well be just at the beginning of a major bear market,” Rudolph said.