Pakistan Stock Market crashed following the lead from the international and Asian Markets
*ISLAMABAD - **Pakistan Stock Market crashed following the lead from the international and Asian Markets.*
*The global oil crisis and price cut that caused stock markets across the globe to fall reflected in the Pakistani market as well. It left all the scrips in red after seven minutes of “panic” with a 5.8% fall preceding a halt in trading.*
The benchmark KSE100 index lost an overall 2,283 points until 10am in the morning, recording a 5.83% loss which was followed by a 45-minute halt in trading. The halt helped the market recover as the cement sector led the way to recuperation.
The market fall was mainly triggered after the Organisation of the Petroleum Exporting Countries (OPEC) failed to reach an agreement about oil production to maintain prices. It trickled down to international markets as the prices of Brent Crude fell 30%.
In Pakistan, the cascading effect was coupled with a tumble by the banking sector due to prospects of an interest rate cut, which caused a steep fall in the overall market. Financial and securities analysts suggest that the rates are likely to be brought down by 50 basis point—the largest cut in history.
However, the market was on the path to recovery after trading resumed, showing that the panic fizzled out, analysts say.
The oil and banking sector still remained in the red at the time this report was published but the market regained over 1,000 points and traded above the 36,900 level.