PSX bench­mark index plunges 4.68pc to close at 27,228

The Pak Banker - - FRONT PAGE - KARACHI -APP

Shares con­tin­ued their grim run on Wed­nes­day, with the bench­mark KSE100 index clos­ing 1,336 points or 4.68 per cent in the red, as Pak­istan grap­ples with the reper­cus­sions of the coro­n­avirus out­break that has brought eco­nomic ac­tiv­ity to an al­most stand­still in the coun­try.

The KSE-30 closed at 11,833, down 693 points or 5.53pc for the day. Trad­ing was halted at the Pak­istan Stock Ex­change less than an hour into the open­ing bell af­ter the KSE-100 tanked over 4 per cent - 1,270 points - to reach 27,294. Mean­while, the KSE-30 index shed 5.33pc to reach 11,859 by 12:19pm, when trad­ing was brought to a halt.

Ac­cord­ing to the new rules adopted by the Se­cu­ri­ties and Ex­changes Com­mis­sion of Pak­istan in light of the ex­tra­or­di­nary sit­u­a­tion brought on by the virus out­break, thresh­old for trad­ing halt in in­di­vid­ual stocks has been re­vised - from 7.5pc to 5pc - and that for a wider mar­ket halt has also been changed from 5pc tp 3pc linked to the large cap KSE-30 index. The trad­ing lock now lasts for 2 hours, as op­posed to 45 min­utes be­fore the lat­est changes.

Af­ter trad­ing re­sumed at around 2:24pm, the mar­ket saw a mi­nor spike, re­vers­ing some of its losses with the bench­mark index ris­ing over 600 points to reach 27,994 by 2:45pm. But this mo­men­tum could not be main­tained till mar­ket close, with the index clos­ing at 27,228 - down 4.68pc for the day. Speak­ing to me­dia, Deputy Head of Re­search at AKD Se­cu­ri­ties, Ali As­ghar Poon­awala noted that at cur­rent lev­els (27,295 points), the bench­mark KSE-100 had erased around a third of its value dur­ing the year 2020. "The steep­ness of this cor­rec­tion is sig­ni­fied by the fact around 29pc of this de­cline came since Feb 26 (first virus case re­ported in Pak­istan) with 15 out of the 20 ses­sions since then firmly in the red," Poon­awala said. These lev­els (bench­mark index at around 27,300 points) were last wit­nessed around six years ago, ac­cord­ing to Poon­awala, when on April 1, 2014, the KSE-100 index closed at 27,159 points.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.