Stock tumble as KSE-100 slides 5.62pc on sell-off trigerred by virus outbreak
The Pakistan Stock Exchange was a sea of red once again on Monday with the benchmark KSE-100 index closing down 2,416 points, or 6.7 per cent, at 33,644 – back to levels last seen about four months ago (Oct 24, 2019).
With today’s close, the benchmark index has recorded a decline of 17.4pc in the current year, falling around 12pc from the first reported case of COVID-19 in the country on Feb 26 and 22pc below the recent high of 43,218pts on Jan 13, 2020.
Today’s session also saw the worst intra-day decline since the 2008 financial market crash (on June 24, 2008) when the index slipped 7.9pc during the day.
Trading was halted around 10:13am today – marking the the fourth time such a measure was enforced in two weeks – when the large cap KSE-30 index crashed 5.53 per cent.
According to bourse rules, if the KSE-30 index moves over 4pc or more in any direction for a period of five minutes, trading is halted for 45 minutes.
He maintained that the raising of circuit breakers to 7.5pc (from 5pc previously) starting today also exacerbated today’s plunge, giving individual stocks further room for downward movement.
Meanwhile, Head of Foreign Institutional Sales at Next Capital Limited Faizan Munshey added that KSE-100 index followed the trend in world markets, for which coronavirus was a major reason.