Bloodbath at PSX as KSE-100 Index sheds over 1716.56 points
The objective of introducing market halt is to safeguard investors and market participants
KARACHI (Dunya News) –The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index witnessed another steep fall on Thursday as the index plunged 1716.56 points on negative sentiments with respect to outbreak of coronavirus around the globe.
The PSX triggered a market halt at 02:13 pm which lasted for 45 minutes. The market halt was triggered as a standard protocol for risk management purposes, said a spokesperson of the PSX.
The spokesman said, "Market halt" procedure has been introduced by PSX as a frontline regulator in line with international best practices and approved by SECP in PSX regulations in December of 2019.
The action triggers when the KSE-30 index moves 4 percent either way and remains there for 5 consecutive minutes.
The objective of introducing market halt is to safeguard investors and market participants during volatile markets.
During this halt, trading in all securities remained temporarily suspended in order to ensure a cooling off period and run a mark to market activity as a risk management measure. The stock experts were of the view that the bearish trend in the markets around the gbolve set in after the World Health Organization (WHO) declared the coronavirus as a global pandemic.
Moreover, the travel advisories issued by US President Donald Trump for its citizen to the Europe also triggered a sell off panic among the traders.
Oil prices also fell following the travel restrictions by the US after the World Health Organization described the outbreak as a pandemic.
Brent crude LCOc1 was down $2.01, or 5.6%, at $33.78 by around 0930 GMT. U.S. crude CLc1 was down $1.77, or 5.4%, at $31.21.
The US dollar also gained value against the Pakistani rupee in both interbank and open markets. The greenback increased by 88 paisa in interbank market to trade at Rs159.30, and by 50 paisa in open market to trade at 158.50.
The price of the US dollar has surged by Rs5.05 in interbank market and by Rs4.20 in open market in four days.
