PSX crashes as KSE 100 Index loses over 2400 points

The index since making its high in January 13, 2020 of 43218 points has suffered a loss almost 22pc.

KARACHI (Dunya News) – The capital market witnessed worst session in the history of the equities trading where share values plunged drastically and the fall of more than 2400 was the biggest decline in a session was increase in cases of the corona virus in the country disturbed the investors the mood, dealers said.

The KSe-100 index nose-dived by 6.6 percent or 2375 points to 33684 points.

The market since the opening of the market was under tremendous pressure and within few minutes of opening index was down by in excess of 600 points and by 10.15 am the KSE-30 index was down 5 percent which turned into lock down of the index, trading halted for 45 minutes. Trading resumed around 11 am and soon index suffered colossal loss and saw record in making with index lost more than 2400 points, biggest decline in history of the exchange.

The index since making its high in January 13, 2020 of 43218 points has suffered a loss almost 22 percent.

An analyst from Topline Securities said that bulls don`t seem to catch a break, as KSE 100 index tanked by 7.1% during the trading session.

Amid going concern of slowdown in economic activity in the country due to increasing number of COVID-19 cases (94 reported cases so far), investors are preferring cash over equity.

He said that the pressure in regional markets along with weak opening by European equities and as well as slum in oil prices amid bleak demand outlook weighed down on investor sentiment, as selling was observed across the board.

Asian markets were also on the losing site because of the US Futures which tumbled sharply after US Federal Reserve cut benchmark interest rate by one percent to zero to 0.25 percent, indicating eagerness of the authorities to clamp down the fallout from the global meltdown owing to corona virus.

By Haris Zamir