Shares sink below 40,000 mark
Statesman Report
KARACHI: The Pakistan Stock Exchange began another week on a bearish note on Monday, with the KSE-100 index plunging 846.93 points (2.16 per cent) as analysts pointed to a need for fiscal adjustment and the market reacted to the impact of the coronavirus outbreak hurting imports.
The index, which had settled for the weekend at 40,143.63, fell to 39,296.70 points at the market’s close. The apex of the day remained 40,150.34 points while the lowest the stocks tumbled to was 39,196.19.
Deputy Head of Research at AKD Securities, Ali Asghar Poonawala, said two things were visible in the stock market.
The first is the need to fill the fiscal gap. He said that even though the government is saying there won’t be a mini-budget, there is a need for some fiscal adjustment.
Secondly, Poonwala said that there was a knock-on impact from the coronavirus. He said that there are a lot of semi-used and raw material goods that come from China that have been held for over 30 days. He said that importers have to revert to alternative sources for importing the products, which are more expensive most of the time.