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Market watch: PSX crashes almost 7% as pandemic batters sentiment

by Pakistan Latest News Update

KSE-100 index falls 2,102.58 points to below 29,000 amid lockdown in provinces. PHOTO: FILE

KSE-100 index falls 2,102.58 factors to beneath 29,000 amid lockdown in provinces. PHOTO: FILE

KARACHI: Bears maintained a agency grip on the Pakistan Inventory Change (PSX) on Tuesday because the benchmark index tanked almost 7%.

After recording the worst loss since 2008 up to now week, the index plummeted even additional because it breached the 29,000-point barrier when buying and selling resumed after a three-day break.

The KSE-100 index dived as quickly as buying and selling started, falling almost 1,900 factors, which as soon as once more triggered a halt in buying and selling exercise, this time for 2 hours.

The Securities and Change Fee of Pakistan (SECP), in a press release, directed the PSX to start buying and selling at 11am from Tuesday onwards for 15 days as provinces went into lockdown.

It additionally acknowledged that the buying and selling halt could be for 2 hours in case the secondary benchmark KSE-30 index fell 5% and didn’t get well within the subsequent 5 minutes.

The downtrend got here on the again of fears {that a} international recession was imminent because the coronavirus pandemic compelled many international locations internationally to enter lockdown. Policymakers throughout the globe have been trying to stave off a deep financial freeze from the lockdown and journey bans by way of a slew of financial and monetary measures.

Even after the two-hour pause, there was no restoration and the KSE-100 index plunged additional, hitting a low of 28,565 factors.

At shut, the benchmark KSE-100 index recorded a lower of two,102.58 factors, or 6.86%, to settle at 28,564.83.

“The KSE-100 index slumped by 6.9% (down 2,103 points) and closed at 28,565, the lowest level since September 1, 2014. This is the highest day-on-day decline in percentage terms since May 20, 2002 (-7.5%),” acknowledged Arif Habib Restricted (AHL) in its report.

AHL Head of Fairness Gross sales Saad bin Ahmed informed The Specific Tribune that buyers have been jittery as a result of a worldwide meltdown and potential devastating affect on native companies as a result of shutdown of actions in nearly your entire nation.

“Recovery of businesses, despite the announcement of a package, looks a distant possibility, which is causing investors to en cash their positions. Cash is certainly the king in these desperate times,” he added.

In the meantime, AHL Head of Analysis Samiullah Tariq was of the view that the market was bearing the brunt of a near-lockdown within the nation in addition to halt to financial actions in different international locations.

The market noticed promoting stress throughout the board.

JS World analyst Maaz Mulla mentioned the inventory market opened in free fall because the index plummeted over 2,157 factors in intra-day buying and selling, mirroring the behaviour of world fairness markets amid deepening corona fears.

“The drastic fall not only triggered a two-hour long trading halt but also pushed the KSE-100 well below the 29,600 level.”

Furthermore, the variety of confirmed COVID-19 instances in Pakistan crossed 900 as provinces go below lockdown. Main decliners of the day have been ENGRO (-7.5%), HBL (-7.5%), HUBC (-7.5%), MCB (-7.5%), FFC (-7.5%), OGDC (-7.1%), PPL (-7.5%), UBL (-7.5%), LUCK (-7.5%) and BAHL (-7.5%).

Traded worth declined by 71% to $16 million whereas quantity stood at 99 million shares, down 60%.

“Going forward, we expect market to remain bearish as the coronavirus situation prevails across the globe and recommend investors to remain cautious,” he added.

General, buying and selling volumes decreased to 98.eight million shares in contrast with Friday’s tally of 245 million. The worth of shares traded through the day was Rs2.5 billion.

Shares of 285 corporations have been traded. On the finish of the day, 24 shares closed larger, 253 declined and eight remained unchanged.

Okay-Electrical was the quantity chief with 25.6 million shares, dropping Rs0.34 to shut at Rs2.65. It was adopted by Unity Meals with 11.9 million shares, declining Rs0.82 to shut at Rs7.89 and The Financial institution of Punjab XD with 9.6 million shares, dropping Re1 to shut at Rs7.01.

International institutional buyers have been web sellers of Rs180.5 million price of shares through the buying and selling session, based on information compiled by the Nationwide Clearing Firm of Pakistan.

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