PakStox Outlook

RE-COMPOSITION OF JS MOMENTUM FACTOR INDEX (JSMFI) The constituents of JSMFI along with their weights in the index as of March 27, 2025 are as under:

The Indian central bank cut its key repo rate by 25 basis points to 6.00% for the second time in a row. Also signaled a shift in its monetary policy stance from "neutral" to "accommodative." Decision mad on rising uncertainty from new 26% U.S. tariffs on Indian imports. Aimed at reviving a slowing economy, follows a similar rate cut in February—the first since May 2020. India's benchmark 10-year bond yield was marginally lower at 6.50% after the announcement, against 6.51% before, while the rupee was little changed at 86.57. The benchmark equity indexes extended their losses and were down around 0.6% each.

Yesterday's 3.3% decline at the PSX—which at one point forced a trading halt after falling as much as 7.3%—was by no means warranted. But for a small market like ours, any big move on either side is often meaningless and typically reflects our wild mood swings—hardly noteworthy.

The world has been shaken to its core, and the global trade order—painstakingly established through years of negotiation—now stands disrupted by the unilateral imposition of retaliatory tariffs by the United States of America. Recall the tremendous wealth that was created and distributed globally following the establishment of the WTO and China’s integration into the global economic system at the turn of the century—alongside a record-breaking run in stock markets around the world.