PSX recovers after volatile session to end in the green

KARACHI: The stock market recovered from intra-day losses on Friday and ended on a positive note after witnessing a bloodbath losing nearly 1700 points earlier in the day.

The benchmark KSE 100 index saw an overall increase in 104.19 points (0.29 percent) and closed at 36,060.38 points. The market fell as low as 34,266.91 (1689.78 points) but gained 104.19 points (0.29 percent) to close in the green. The total volume of shares was 

A few minutes after markets opened, trading was halted at the stock exchange for the third time this week after the KSE-30 index fell 5.96 percent to 15,039.17 points. When trading stopped, the KSE-100 index was down 1,682.96 (4.68pc) to 34,273.73 points.

The lower bench KSE 30 index also recovered by 24.27 points (0.15 percent) and closed at 16,016.64 points. The top active stock which saw increase in share prices included MLCF (0.58%), Hascol (1.29%), DGKC (0.91%), PIOC (2.88%), and PPL (1.44%), while BOP (-0.98%), FCCL (-0.06%), TRG (-1.70%), Unity (-1.28%) and CHCC (-1.24%).

The stock market came to a halt as trading was suspended at 9:25 AM, making it the third time the measure has been enforced with the week. A similar move was made during Monday’s bloodbath and yesterday when the stock market bled 1716 points as global equity markets stumbled. According to PSX rules, trading is halted if KSE 30 index falls beyond four percent for a period of five minutes or more.

The market saw a downward trajectory since the past few days which continues over the global impact of the coronavirus. This was exacerbated over reports that foreign investors have pulled one-sixth of their investments, called ‘hot money’ in treasury bills (T-bills) during the last three weeks.

The global market sentiment contributed to the downfall as equity markets are in turmoil. Asian equities went into meltdown on Friday amid a rout that saw markets experience their worst day in decades. The US and Europe struggled to even get a grip on the crisis while central bank’s moves to support financial markets or provide economic stimulus have failed and investors fled for safer areas.

Tokyo fell as much as 10pc at one point before edging back slightly, Seoul tanked 8pc and Mumbai fell more than 9pc. Hong Kong went into the breakdown 5.8pc, while Sydney, Singapore, Wellington, Jakarta and Manila were between four and five percent off. Bangkok dropped more than 7pc, with Taipei and Kuala Lumpur more than 6pc down. The selling led to brief trading halts in Seoul, Mumbai, Bangkok and Jakarta.

The losses follow a virtual implosion on Wall Street and in Europe. The Dow lost 10pc in its worst session since 1987, while London also had its worst day since that year. Frankfurt had its blackest day since 1989, the year the Berlin Wall fell, while Paris suffered its biggest one-day loss on record.