US trade tariff uncertainty, geopolitical crises played a catalyst role in the bearish activity, says analyst
\n KARACHI
\nThe stock market extended losses on Tuesday, though a late rebound trimmed losses as value hunters stepped in after the previous session\u2019s sharp sell-off, as higher government bond yields and policy uncertainty continued to weigh on sentiment, with fresh US tariff developments and escalating geopolitical risks adding to investor caution.
\nThe Pakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 Index settled at 166,258.54 points, down 1,432.54 points, or 0.85%, from the previous close of 167,691.08. The index traded between a high of 169,237.51 (up 1,546.43 points, or 0.92%) and a low of 163,907.59 (down 3,783.49 points, or 2.26%). \u201cStocks witnessed selling after a surge in Govt Bond yields in the SBP auction last week. SBP policy tightening amid surging inflation and weak earnings projections led to a massive selloff,\u201d said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
\n\u201cUS trade tariff uncertainty, geopolitical crises and uncertainty over the outcome of IMF third review talks played a catalyst role in bearish activity at PSX,\u201d he added. Fresh US tariffs on imported goods came into effect on Tuesday after President Donald Trump moved to rebuild his trade agenda following a Supreme Court ruling that struck down many of his broad duties.
\nThe new tariffs, initially set at 10%, are framed as a response to US balance-of-payments deficits, with Trump signalling an increase to 15%, while sector-specific tariffs such as those on steel and autos remain intact. The new duty is set to last 150 days unless extended by Congress, and US Customs and Border Protection said it would also stop collecting tariffs invalidated by the court starting Tuesday.
\nSeparately, Trump said he will decide in \u201c10 or 15 days\u201d whether to order strikes on Iran if no nuclear deal is reached, while Axios reported he was presented with military options including a direct attack on Iran\u2019s supreme leader, Ayatollah Ali Khamenei. The US and Iran have held two rounds of indirect talks in Oman and Switzerland, with talks set to resume Thursday in Switzerland, though positions have yet to converge.
\n\u201cIt seems like a relief bounce after a sharp sell-off. Selective buying is seen by value hunters. Broader direction contingent upon US-Iran talks,\u201d said AAH Soomro, an independent investment and economic analyst. <\/p>\n","protected":false},"excerpt":{"rendered":"
US trade tariff uncertainty, geopolitical crises played a catalyst role in the bearish activity, says analyst KARACHI The stock market extended losses on Tuesday, though a late rebound trimmed losses as value hunters stepped in after the previous session\u2019s sharp sell-off, as higher government bond yields and policy uncertainty continued to weigh on sentiment, with […]<\/p>\n","protected":false},"author":2,"featured_media":363666,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-533318","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n