For the fifth time in eight working days, trading was halted at the Pakistan Stock Exchange after the KSE-30 index fell down by 5%.
On Wednesday, the KSE-100 index was once again in a free-fall as it dropped down by nearly 5.16% to 30,934 points. The panic-induced selling caused the index to nosedive over 1,682 points in early trading, which led to a halt in trading activity for nearly 45 minutes as per the new PSX rules.
The market halt was triggered at 10:17 a.m. All equity and equity-based derivative markets shall remain suspended for 45 minutes and shall reopen following a 5-minute pre-open session.
The index is now just 2,263.18 points away from its 52-week low of Aug 2019, according to Capital Stake.
The KSE-100 is down by almost 22% so far in just nine trading days.
A.A.H Soomro, managing director at Khadim Ali Shah Bukhari Securities, said the monetary cut was less than punters, media personnel, industrialist and fund managers’ expectations. He further added that the SBP has not reduced the Minimum Deposit Rates for the banks to the extent of 75 bps (only 25bps). This would lead to compression in banks’ margins. Thus, the market is expressing disappointment, he added.
Source: Pro Pakistani