PSX incurs worst decline in over 18 years

The Pakistan Stock Exchange suspended trade for the fifth time on Wednesday as early hour trade recorded a massacre. All sectors, including top active scrips, landed in the red zone with a few exceptions, but that too with little volume.

The benchmark KSE-100 index dropped below the 31,000-point
barrier, where it was last seen back in September. The market closed at 30,416
points at a loss of 6.8% of in value.

The market has lost 24% of its value since the start of 2020
and is on a decline of over 19% in a year. The single-day loss it recorded
today (Wednesday) was the worst in over 18 years.

The market is recorded to have lost Rs351 billion in market
capitalization. The day-on-day trading value decline is 53% while the volume of
trade was down 23%.

“The government needs to act now by giving much needed
stimulus since the situation arising out of coronavirus is far reaching and has
hampered the demand side,” said Standard Capital Securities Chief Executive
Officer Naushad Chamdia.

“Governments must act by curtailing interest rates even
further,” Chamdia said.

Market experts confirmed that the slash in interest rates,
by 75 bps to stand at 12.5% on Tuesday, which was supposed to encourage buyers
towards equity bourse, was ignored as the heavy selloff didn’t cease. It was in
spite of the fifth trade-halt —which is exercised to give traders time to
reconsider their sentiment— observed in the last eight sessions.

“The increasing number of coronavirus cases in the country
weighed down on their sentiment,” a trade report by Topline Securities Ltd
recorded.

With the coronavirus pandemic taming traders’ confidence and
the continuing cut in oil demands and prices across the world already scaring
off traders, the partial lockdown of the metropolis amid a growing number of
cases has further depreciated trade.

Article source: https://www.samaa.tv/money/2020/03/psx-incurs-worst-decline-in-over-18-years/