Stocks hammered as index dives over 1,000 points
KARACHI: Following a phenomenal rally in the past week, bears once again clawed their way back to the Pakistan Stock Exchange, snapping a four-day winning streak to drag the index below the 31,000-point mark. After a brief open in the positive, the index dived more than 1,000 points as buying euphoria over the prime minister’s financial package faded amid mounting coronavirus cases.
Furthermore, a downward revision of Pakistan’s projected GDP growth by the World Bank and Asian Development Bank also dampened interest of market participants. Next Capital Limited Head of Foreign Sales Faizan Munshey said, “Doubts about the fate of economy in the face of the coronavirus hammered Pakistan stocks again on Monday, halting its best weekly gain since 2000 as the number of virus cases across the country increased.”
He pointed out that delay in the Organisation of the Petroleum Exporting Countries’ (OPEC) meeting, which was scheduled for Monday to ease the crude supply glut, added to the sell-off.
The construction package announced by the PM on Friday failed to excite investors as they feared the coronavirus would shut down the economy longer than expected, he added.
At close, the benchmark KSE-100 index recorded a decrease of 1,042.64 points, or 3.30%, to settle at 30,579.15. - Statesman