KARACHI: A record increase in oil prices and Moody’s report about Pakistan’s credit ratings led to a massive 923 points slump in the Karachi Stock Exchange 100 index on Friday and as a result investors lost Rs. 111billion.
After another day when the index had slid 500 points, the market opened on Friday at 42,237.91 points.
However, the overnight news of prices of petroleum being raised by another Rs30, Moody’s giving a negative outlook for the country’s economy basing it on rising inflation and political instability, and foreign exchange reserves dipping below the $10 billion mark saw any more investor confidence disappear.
The opening session saw the index creep up 72.26 points before it started to fall.
It fell below the 42,000 points psychological barrier.
The index, though, could not arrest the decline as it touched a low of 41,145 points, before making a small recovery. The market closed 2.19% down at 41,314.88, with investors losing Rs111 billion.
