Home/Samaa News/Pakistan stock market continues to bleed, sees third consecutive halt
Trading of shares at the Pakistan Stock Exchange halted at 10:13am on Monday for 45 minutes after the market lost 4.6% of its value. This is the third consecutive halt in as many sessions.
Equity markets across the world continue to bleed over fears of the economic implications of the COVID-19, which the World Health Organization declared as a global pandemic last week.
The fourth temporary halt, in only six sessions, comes as Pakistan reported its highest number of coronovirus cases in a single day. Sindh reported 50 new cases, raising the province’s tally to 76 and Pakistan’s to 94. This follows Italy, now the epicentre of coronavirus outbreak in Europe, confirming 368 deaths in a single day.
“US futures [are] doing badly despite stimulus and regional markets are also down,” said Raza Jafri, director of research at Intermarket Securities. The analyst said it’s officially a bear market.
The latest halt comes after the KSE-100, a gauge to measure market performance, fell to 34,409 points, shedding 1,651 points in the opening hour of trade. The fresh bloodbath at the bourse reversed the market’s recovery from Friday’s crash. Last week, the trade was suspended on three occasions (Monday, Thursday and Friday) with the benchmark KSE-100 index trading down 20% from its highest level this year with $10 billion shaved off the market’s value.
“The meltdown is in line with the rest of the world,” Alfalah GHP Asset Management CEO Maheen Rahman told SAMAA Digital on Firday.
On Wednesday, the World Health Organisation declared COVID-19 (the coronavirus) a pandemic and soon after stock markets across the world reacted to it.
The US stock market suffered its worst crash since 1987 as Americans realised the coronovirus will impose new limits on their daily lives, the Washington Post said in a report.
The Dow Jones industrial average, which tracks large companies across American stock markets, posted its largest one-day loss of 10%, worst since the infamous October day known as Black Monday, the newspaper said. As a result, trade in the US stock market was halted for the second time in a week for 15 minutes to stop panic selling.
In what analysts call a global route, Asian markets followed suit. Stock markets in Japan, China, Hong Kong, India, and Singapore were down 7.5%, 3.5%, 5.8%, 9.4% and 5% respectively with trading temporarily halted across many markets in the region. Monday was no different as regional markets were down again and Pakistan followed suit.
It was the fourth time in six trading sessions that trade had to be halted, this time despite a one percentage point rise in the threshold for suspension. If the KSE-30, which tracks the performance of 30 large and most liquid stocks, moves 5% up or down from its opening value for five minutes, the rule is that trade must be halted for 45 minutes so investors can take fresh positions. This limit was 4% on Friday and has been increased by a percentage point only today.
This is a developing story.
Pakistan stock market continues to bleed, sees third consecutive halt
Trading of shares at the Pakistan Stock Exchange halted at 10:13am on Monday for 45 minutes after the market lost 4.6% of its value. This is the third consecutive halt in as many sessions.
Equity markets across the world continue to bleed over fears of the economic implications of the COVID-19, which the World Health Organization declared as a global pandemic last week.
The fourth temporary halt, in only six sessions, comes as Pakistan reported its highest number of coronovirus cases in a single day. Sindh reported 50 new cases, raising the province’s tally to 76 and Pakistan’s to 94. This follows Italy, now the epicentre of coronavirus outbreak in Europe, confirming 368 deaths in a single day.
“US futures [are] doing badly despite stimulus and regional markets are also down,” said Raza Jafri, director of research at Intermarket Securities. The analyst said it’s officially a bear market.
The latest halt comes after the KSE-100, a gauge to measure market performance, fell to 34,409 points, shedding 1,651 points in the opening hour of trade. The fresh bloodbath at the bourse reversed the market’s recovery from Friday’s crash. Last week, the trade was suspended on three occasions (Monday, Thursday and Friday) with the benchmark KSE-100 index trading down 20% from its highest level this year with $10 billion shaved off the market’s value.
“The meltdown is in line with the rest of the world,” Alfalah GHP Asset Management CEO Maheen Rahman told SAMAA Digital on Firday.
On Wednesday, the World Health Organisation declared COVID-19 (the coronavirus) a pandemic and soon after stock markets across the world reacted to it.
The US stock market suffered its worst crash since 1987 as Americans realised the coronovirus will impose new limits on their daily lives, the Washington Post said in a report.
The Dow Jones industrial average, which tracks large companies across American stock markets, posted its largest one-day loss of 10%, worst since the infamous October day known as Black Monday, the newspaper said. As a result, trade in the US stock market was halted for the second time in a week for 15 minutes to stop panic selling.
In what analysts call a global route, Asian markets followed suit. Stock markets in Japan, China, Hong Kong, India, and Singapore were down 7.5%, 3.5%, 5.8%, 9.4% and 5% respectively with trading temporarily halted across many markets in the region. Monday was no different as regional markets were down again and Pakistan followed suit.
It was the fourth time in six trading sessions that trade had to be halted, this time despite a one percentage point rise in the threshold for suspension. If the KSE-30, which tracks the performance of 30 large and most liquid stocks, moves 5% up or down from its opening value for five minutes, the rule is that trade must be halted for 45 minutes so investors can take fresh positions. This limit was 4% on Friday and has been increased by a percentage point only today.
This is a developing story.
Pakistan stock market continues to bleed, sees third consecutive halt
Trading of shares at the Pakistan Stock Exchange halted at 10:13am on Monday for 45 minutes after the market lost 4.6% of its value. This is the third consecutive halt in as many sessions.
Equity markets across the world continue to bleed over fears of the economic implications of the COVID-19, which the World Health Organization declared as a global pandemic last week.
The fourth temporary halt, in only six sessions, comes as Pakistan reported its highest number of coronovirus cases in a single day. Sindh reported 50 new cases, raising the province’s tally to 76 and Pakistan’s to 94. This follows Italy, now the epicentre of coronavirus outbreak in Europe, confirming 368 deaths in a single day.
“US futures [are] doing badly despite stimulus and regional markets are also down,” said Raza Jafri, director of research at Intermarket Securities. The analyst said it’s officially a bear market.
The latest halt comes after the KSE-100, a gauge to measure market performance, fell to 34,409 points, shedding 1,651 points in the opening hour of trade. The fresh bloodbath at the bourse reversed the market’s recovery from Friday’s crash. Last week, the trade was suspended on three occasions (Monday, Thursday and Friday) with the benchmark KSE-100 index trading down 20% from its highest level this year with $10 billion shaved off the market’s value.
“The meltdown is in line with the rest of the world,” Alfalah GHP Asset Management CEO Maheen Rahman told SAMAA Digital on Firday.
On Wednesday, the World Health Organisation declared COVID-19 (the coronavirus) a pandemic and soon after stock markets across the world reacted to it.
The US stock market suffered its worst crash since 1987 as Americans realised the coronovirus will impose new limits on their daily lives, the Washington Post said in a report.
The Dow Jones industrial average, which tracks large companies across American stock markets, posted its largest one-day loss of 10%, worst since the infamous October day known as Black Monday, the newspaper said. As a result, trade in the US stock market was halted for the second time in a week for 15 minutes to stop panic selling.
In what analysts call a global route, Asian markets followed suit. Stock markets in Japan, China, Hong Kong, India, and Singapore were down 7.5%, 3.5%, 5.8%, 9.4% and 5% respectively with trading temporarily halted across many markets in the region. Monday was no different as regional markets were down again and Pakistan followed suit.
It was the fourth time in six trading sessions that trade had to be halted, this time despite a one percentage point rise in the threshold for suspension. If the KSE-30, which tracks the performance of 30 large and most liquid stocks, moves 5% up or down from its opening value for five minutes, the rule is that trade must be halted for 45 minutes so investors can take fresh positions. This limit was 4% on Friday and has been increased by a percentage point only today.
This is a developing story.
Reviewed by AsifKhan
on
12:12 PM
Rating: 5
