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Pakistan stock exchange collapses as KSE-100 index tumbles more than 2,000 points


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The Pakistan Stock Exchange’s benchmark KSE-100 index plunged 2,106 points on Monday, 45 minutes after the starting bell on the first day of the trading week, reported Geo News.

The index, which had closed at 38,220 points on Friday, nosedived at the start of the trading, shedding 2,106 points (5.51%) before trading was suspended.

The slump was triggered amidst a global sell-off on coronavirus fears and spreading contagion from a creeping economic slowdown.

“PSX has triggered a market halt at 9:37am which will last for 45 minutes," the management wrote in a press release.

"The market halt is triggered as a standard protocol for risk management purposes,” a statement from the bourse said.

'Temporary setback'

Khurram Schehzad, CEO at Alpha Beta Core, noted that the market was under pressure after oil prices witnessed their biggest one-day drop.

"It is a big positive for Pakistan, as oil prices at these levels would result in $4-5 billion in savings," he said.

"The outlook for the market is positive given the expected decline in [Pakistan's] energy imports and trade deficit; inflation and interest rates; energy and leverage costs; potential to improve indirect taxes and reduced subsidy," he explained.

Muhammad Sohail, CEO at Topline Securities, had similar views, noting hat the oil import bill could drop by $3-4bn a year as oil prices sink to multi-year lows.

"Lower oil prices and the declining trend in inflation numbers hint at an early rate cut, which would be a big positive for the market," he said.

What is Market Halt?

“Market halt” procedure has been introduced by the Securities and Exchange Commission of Pakistan in PSX regulations in December of 2019. The action triggers when the KSE-30 index moves 4 % either way and remains there for 5 consecutive minutes.

The objective of introducing market halt is to safeguard investors and market participants during volatile markets. During this halt, trading in all securities remains temporarily suspended in order to ensure a cooling off period and run a mark to market activity as a risk management measure.

Asian markets collapse

The crash also was triggered amidst a global sell-off on coronavirus fears and spreading contagion from a creeping economic slowdown, as well as a crude oil price war between Saudi Arabia and Russia.

Trading floors were a sea of red across Asia, with Tokyo, Sydney and Manila plunging around 6%, while Hong Kong shed 3.5% by lunch.

Mumbai, Singapore, Seoul, Jakarta and Wellington were more than 3% down, Shanghai and Taipei shed at least 2% and Bangkok gave up 5%. The losses tracked sharp falls in Europe and Wall Street on Friday.

Global market collapses

Around the globe, equity markets collapsed as the rapidly-spreading coronavirus fans fears over the global economy, while a crash in oil prices added to the panic, with energy firms taking a hammering.

As the deadly disease claims more lives around the world, dealers are fleeing out of riskier assets and into safe havens, sending gold and the yen surging and pushing US Treasury yields to new record lows.

Driving the declines was a ferocious sell-off in the oil markets, sparked by top exporter Saudi Arabia slashing prices — in some cases to unprecedented levels — after a bust-up with Russia over production.

Oil down about 20% after Saudi price cuts

Oil plunged about 20% Monday after Saudi Arabia made deep price cuts following a failure by OPEC and its allies to strike a deal to support energy markets.

The two main contracts were both down about 20%, with West Texas Intermediate sliding to about $32 a barrel and Brent crude to about $36 a barrel.

A meeting of main producers was expected to agree to deeper cuts to counter the impact of the coronavirus — but Moscow refused to tighten supply.

In response, Riyadh slashed its price for April delivery by $4-$6 a barrel to Asia and $7 to the United States.

Russia's decision not to comply had already battered prices and there are warnings that prices could continue to drive lower if the two sides do not reach an agreement.

"It's unbelievable, the market was overwhelmed by a wave of selling at the open," said Andy Lipow, at energy consultancy Lipow Oil Associates.

"OPEC+ has clearly surprised the market by engaging in a price war to gain market share."

Jeffrey Halley, senior market analyst at OANDA, said: "Saudi Arabia seems intent on punishing Russia.

https://www.thenews.com.pk/latest/6...as-kse-100-index-tumbles-more-than-200-points
 
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Time for blaming game is over. It is our collective responsibility for the failures in different walks of life. So all Pakistanis must join hands to make Pakistan is prosperous country.
 
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Even US stock market is too down
 
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Look at world markets

They are all collapsing, Corona virus will most likely push world into recession
 
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Look at world markets

They are all collapsing, Corona virus will most likely push world into recession

Also saudi announce to go for full production and will also lower down the price. This happened just 1 day ago i guess
 
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Russia saudia oil war. Youtube it
 
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PSX plunges by over 2,400 points as coronavirus fears dampen market prospects


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Karachi Stock Exchange (KSE) 100 Index jumped by 799.47 points on Tuesday
KARACHI: The Pakistan Stock Exchange on Monday slumped by over 2,400 points as investors panicked over the supply disruptions and other factors ensued by the outbreak of the virus.

A total of 215,437,490 shares were traded compared to the trade 290,470,770 shares during the previous day, whereas the value of shares traded during the day stood at 8.060 billion as compared to Rs 13.968 billion during last trading day.

As many as 346 companies’ transacted shares in the Stock Market Monday, out of which 18 recorded gain and 319 sustained losses whereas the share price of 9 companies remained unchanged.

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According to a notification by the PSX, trading was halted around 10:13 AM due to 5% decline in the KSE-30 Index. All equity and equity based markets were closed for 45 minutes as well.

The objective of introducing market halt is to safeguard investors and market participants during volatile markets.

https://www.thenews.com.pk/latest/6...-as-coronavirus-fears-dampen-market-prospects
 
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Bloodbath at PSX as panic over coronavirus takes hold
* KSE-100 dives 2,441 points amid plunge in global markets, growing pandemic fears

Equities Correspondent

MARCH 17, 2020

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As coronavirus panic takes hold in country, Pakistan Stock Exchange on Monday traded in a bearish trend, with the benchmark KSE-100 Index recording its biggest fall in a single day since 2009.

Dropping below the 34,000 mark, the KSE-100 Index lost 2,441.98 points, or 6.77pc, to touch its intraday low at 33,618.90. The sudden plunge at the start of the session caused yet another 45-minute ‘market halt’ which is fourth in the last six trading sessions. As trading resumed, the index failed to find any positive triggers and settled lower by 2,375.97 points at 33,684.91.

The panic selling following the COVID-19 outbreak worldwide has dented the global economy including Pakistan, which was the main reason behind the huge drop. Furthermore, the emergency rate cut of 100 bps by US Federal Reserve has created more anxiety among the investors, who have grown furious over the fiscal condition and capacity of the US government.

Among other indices, the KMI-30 Index lost 3,890.87 points to end at 52,017.17, while the KSE All Share Index dropped 1,424.74 points, closing at 23,867.22. Of the total traded shares, 18 advanced and 289 declined.

BMA Capital Management Senior Vice President Irfan Saeed said the free-fall of KSE-100 is primarily due to a plunge in the global markets, as even globally coordinated policy measures have failed to stem panic-stricken investor fears of ensuing recession as a result of COVID-19. He said the sharp rise in coronavirus cases in Pakistan in particular has fuel to fire. He said monetary policy announcement by State Bank of Pakistan will set the guiding principles for the future course of the market, as it is expected that the central bank will cut its policy rate to add stimulus to the economy.

At KSE-100 sector-wise, the index was let down by commercial banks with 689 points, oil and gas exploration companies with 326 points, fertilizer with 281 points, cement with 220 points and power generation and distribution with 155 points. Among companies, the most points taken off the index was by Habib Bank Limited, which stripped the index of 169 points followed by Engro with 140 points, Hub Power Company Limited with 126 points, Muslim Commercial Bank with 124 points and United Bank Limited with 115 points.

In global market, Wall Street has seen a blood bath as rate cut by US Fed failed to breathe certainty into the market and coronavirus continued to rattle the investor sentiment. US stocks fell sharply, with the Dow falling to its lowest level in nearly three years. Worries mounted that central banks’ emergency measures over the weekend meant the economy is in much worse shape than previously believed. Investors also bailed out of stocks despite a massive intervention by the US Federal Reserve. The central bank said it would purchase another $700 billion worth of treasury bonds and mortgage-backed securities.

Instead of soothing the markets, another emergency interest rate cut from the Federal Reserve had the opposite effect. Stocks tripped a circuit breaker at the New York open, with the S&P 500 falling more than 7%. Trading was halted for 15 minutes. The Dow was 8.3%, or 1,920 points, lower. The Dow hasn’t been this low since May 2017. The Nasdaq Composite dropped 7.8%. There are now more than 3,000 cases of the novel coronavirus in the United States, according to government agencies and the CDC.

In Asia, stocks in Asia Pacific tumbled. Mainland Chinese stocks dropped on the day, with Shanghai composite 3.4% lower at about 2,789.25 while the Shenzhen composite slipped 4.834% to approximately 1,712.02. Hong Kong’s Hang Seng index also fell 4.03%, as of its final hour of trading. In Japan, Nikkei 225 closed 2.46% lower at 17,002.04. South Korea’s Kospi slipped 3.19% to close at 1,714.86.


https://dailytimes.com.pk/577704/bloodbath-at-psx-as-panic-over-coronavirus-takes-hold/
 
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Unlike the US, EU and other advance countries, PSX is a small part of Pakistan's economy and hence it does not represents in anyway what is actually happening in Pakistan's economy.
 
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Stocks tumble at PSX, despite central bank rate cut
By Ali Ahmed on March 18, 2020
  • The index was being traded at 30,578.72 points witnessing a drop of 2038.21 points and a negative percentage change of 6.25pc.
  • The development comes after Pakistan's central bank announced to cut the key policy rate by 75 basis points.

    Despite a drop in interest rate by the State Bank of Pakistan (SBP), the Pakistan Stock Exchange remained engulfed in coronavirus fears. After the benchmark KSE-100 Index declined by over 1,700 points on Wednesday.

At the time of filing this report, the index was being traded at 30,578.72 points witnessing a drop of 2038.21 points and a negative percentage change of 6.25pc. It may be mentioned here, that PSX triggered a market halt at 10:15am, due to a 5pc decline in KSE30- Index.

Meanwhile, BRIndex100 was being traded at 3,089.58 points showing a negative change of 242.27 points or a negative percentage change of 7.27pc.

On Tueday, the KSE-100 Index plunged by 1,067.98 points or 3.17 percent to 32,616.93 points. Daily trading volumes increased to 240.379 million shares as compared to 215.437 million shares traded.

The development comes after Pakistan's central bank announced to cut the key policy rate by 75 basis points and announced two special financing schemes to address the economic and health challenges posed by the spread of coronavirus (COVID-19).

Talking to newsmen after a meeting of Monetary Policy Committee (MPC) on Tuesday at SBP head office, Governor State Bank Dr. Reza Baqir said the Committee has decided to cut the policy rate by 75 basis points to 12.50 percent. In reaching this decision, the MPC considered key trends and prospects in the real, external and fiscal sectors, and the resulting outlook for monetary conditions and inflation, he added.

“The overall situation in the wake of COVID-19 is still uncertain and SBP also remained vigilant. This is the first steps, not the last and SBP will take more actions and steps, whenever required to support the economy," he said.

Meanwhile, Moody's Investors Service has revised downward the Gross Domestic Product (GDP) forecast for Pakistan from 2.9 percent to 2.5 percent, ie, by 0.4 percent for 2020.

https://www.brecorder.com/2020/03/18/581148/stocks-tumbled-at-psx-another-market-halt-triggered/
 
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ITS criminal to HALT trading at PSX and put circuit breakers,,,

what BS is this ,,

if anyone wants to sell and exit, let him for god's sake,,


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a message to all ppl here,,, PSX is a scam ,,, ( veteran trader here)
 
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Stocks tumble at PSX, despite central bank rate cut
By Ali Ahmed on March 18, 2020
  • The index was being traded at 30,578.72 points witnessing a drop of 2038.21 points and a negative percentage change of 6.25pc.
  • The development comes after Pakistan's central bank announced to cut the key policy rate by 75 basis points.
    psx.jpg

Despite a drop in interest rate by the State Bank of Pakistan (SBP), the Pakistan Stock Exchange remained engulfed in coronavirus fears. After the benchmark KSE-100 Index declined by over 1,700 points on Wednesday.

At the time of filing this report, the index was being traded at 30,578.72 points witnessing a drop of 2038.21 points and a negative percentage change of 6.25pc. It may be mentioned here, that PSX triggered a market halt at 10:15am, due to a 5pc decline in KSE30- Index.

Meanwhile, BRIndex100 was being traded at 3,089.58 points showing a negative change of 242.27 points or a negative percentage change of 7.27pc.

On Tueday, the KSE-100 Index plunged by 1,067.98 points or 3.17 percent to 32,616.93 points. Daily trading volumes increased to 240.379 million shares as compared to 215.437 million shares traded.

The development comes after Pakistan's central bank announced to cut the key policy rate by 75 basis points and announced two special financing schemes to address the economic and health challenges posed by the spread of coronavirus (COVID-19).

Talking to newsmen after a meeting of Monetary Policy Committee (MPC) on Tuesday at SBP head office, Governor State Bank Dr. Reza Baqir said the Committee has decided to cut the policy rate by 75 basis points to 12.50 percent. In reaching this decision, the MPC considered key trends and prospects in the real, external and fiscal sectors, and the resulting outlook for monetary conditions and inflation, he added.

“The overall situation in the wake of COVID-19 is still uncertain and SBP also remained vigilant. This is the first steps, not the last and SBP will take more actions and steps, whenever required to support the economy," he said.

Meanwhile, Moody's Investors Service has revised downward the Gross Domestic Product (GDP) forecast for Pakistan from 2.9 percent to 2.5 percent, ie, by 0.4 percent for 2020.


https://www.brecorder.com/2020/03/18/581148/stocks-tumbled-at-psx-another-market-halt-triggered/
 
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