Share prices suffer colossal losses amid unending chaos
Trade suspension didn’t stop the downward trend at the Pakistan Stock Exchange (PSX) as it suffered more losses even after resumption on Wednesday (today).
The KSE-100 Index was down by 2,200.88 points (6.75 percent), as it closed at 30,416.05. At one point, the index was down to 30,378.68, the lowest level recorded during the trading.
Trading was suspended for 45 minutes at around 10:16am after the KSE-100 Index tumbled by 1,682.77 points (5.16 percent) during early trading.
The day began with the KSE-100 Index at 32,733.87 points but it reached the level of 30,934.16, which forced suspension. This mechanism is employed when the index is down by more than 4 per cent.
The KSE-100 Index has so far lost 25.33 percent since Jan 1 this year.
It is for the sixth time that the mechanism of suspending trading is employed at the PSX during the last eight working days.
It was introduced by the Security and Exchange Commission of Pakistan (SECP) to counter the sudden losses and shore up investors.
Earlier on Tuesday, the PSX witnessed another volatile day with the KSE-100 Index down by 1,067.98 points (3.17 per cent).
As the trading started with the index at 33,684.91, the uncertainty in the world triggered by the rising number of coronavirus cases, the rapid decrease in the oil prices and the looming economic recession continued to affect the market sentiment.
At one point, the KSE-100 Index had reached 32,632, but it closed at 32,733.87 when the trading closed for the day.
On Monday, trading was suspended at the Pakistan Stock exchange twice as the KSE-100 Index at one stage tumbled by over 2,400 points when it experienced the worst single day loss in its history.