Share prices crash as KSE index loses 1,000 points

By: News Desk
Published: 11:08 AM, 13 Mar, 2020
Share prices crash as KSE index loses 1,000 points
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It is yet another day of the bloodbath at Pakistan Stock Exchange as trading was halted for the third time this week after the KSE-100 Index dropped by 1,683 points soon after the business began on Friday.

Although the shares bounced back a bit after the resumption of the trading, the gains survived only a few minutes. Initially, the shares bounced back after trading resumed as the index started recovering with the losses reduced to 483 points.

However, the trend continued after this short-lived recovery as the KSE-100 was down by 1,000 points by the time this report is being filed at 11am.

It is a replication of Thursday’s events when the trading was suspended after huge losses but the trend continued even after the resumption.

The KSE-100 Index currently stands at less than the psychological barrier of 35,000 points.

The 45-minute breather is an automatic trigger to counter the losses if the index is down by 4 percent. It was introduced by the Security Exchange Commission of Pakistan (SECP) last year.

The KSE-100 Index has dropped by 21 percent since January 21; however, this trend reached an alarming status after the economic uncertainty and losses suffered by top markets around the world due to the coronavirus pandemic.

Earlier on Thursday, the PSX had shed 1,716 points and closed at 35,956.69, despite the fact the trading was halted for 45 minutes to control the downward trend. It was for the second time that trading was halted at the Stock Exchange this week because of the huge losses being suffered by the companies and investors.

Experts are now talking about flooring the share prices if the index continued the freefall.