PSX closes with 4,000 points fall, after tumbling over 8,500 points

KARACHI: The Pakistan Stock Exchange (PSX) followed suit with the global stock markets on Monday, plunging over 3,300 points right after opening. As the day progressed, the benchmark KSE-100 index continued to decline. After 5,500 points loss – highest one-day loss in history – the PSX administration temporarily suspended the market.

PSX reopened at 1 PM after temporary suspension, only for it to plunge over 3,000 points more. The benchmark index slipped down by a total of 8,500 points since morning, touching the lowest of 110,291.29 points within minutes of resumption in trading.

Towards the end of the trading day, the index recovered some of its losses, but still closed with 3,882.18 points loss. KSE-100 index opened at 118,791.66 points, and closed at 114,909.48 points.

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The bloodbath was spread across the market, with no prominent major winner or loser. However, the energy and oil sector seemed to be hit harder, which is also in line with the global market trend.

The steep erosion in the market comes after global market crash. Topline Securities CEO Mohammad Sohail told HUM News that due to global sell off Pakistan market is now down 4 per cent. Pakistan’s stock market halted after falling 5 per cent, which offered a cooling period, he said.

ASIAN STOCKS TUMBLE

Major stock indexes plunged in Asia on Monday as White House officials showed no sign of backing away from their sweeping tariff plans, and investors wagered the mounting risk of recession could see US interest rates cut as early as May.

Investors had thought the loss of trillions of dollars in wealth and the likely body blow to the economy would make Trump reconsider his plans. The gloomier outlook for global growth kept oil prices under heavy pressure. Brent fell $1.35 to $64.23 a barrel, while US crude dived $1.395 to $60.60 per barrel.