KARACHI: The Pakistan Stock Exchange (PSX) witnessed the worst possible start to the trading week, with the KSE-100 Index recording its biggest intraday slump (-5.8pc) in its history, forcing a 45-minute ‘market halt’.
According to PSX, the ‘market halt’ procedure had been introduced by the Securities and Exchange Commission of Pakistan (SECP) in the PSX Regulations in December 2019. The action triggers when the KSE-30 Index moves 4pc either way and remains there for five consecutive minutes.
On Monday, investors dumped shares and ran out of the market as they took cues from plunging global stock markets and the worst slump in international oil prices since the 1991 Gulf war.
Oil prices fell more than 30pc after OPEC’s failure to strike a deal with its allies regarding production cuts caused Saudi Arabia to slash its prices as it reportedly gets set to ramp up production, leading to fears of an all-out price war.
US West Texas Intermediate crude dropped 33.16pc to $27.59 per barrel as of 04:23 GMT. International benchmark Brent crude futures also plummeted 30.33pc to $31.54 per barrel.
Plunging 2,302.33 points or 6.02pc, the benchmark KSE-100 Index recorded its intraday low at 35,917.34. However, it managed to recover half the losses, ending the session lower by 1,160.72 points at 37,058.95.
Among other indices, the KMI-30 Index dropped 1,887.75 points to settle at 58,292.54, while the KSE All Share Index declined by 682.79 points, closing at 25,875.06. Out of the total traded shares, 113 advanced and 200 declined.
The overall market volumes were recorded at 307.96 million, with Fauji Cement Company Limited (FCCL +6.92pc), The Bank of Punjab (BOP -6.86pc) and Maple Leaf Cement Factory Limited (MLCF +7.00pc) leading the volume chart. The scripts had exchanged 30.66 million, 22.97 million and 22.52 million shares, respectively.
Sectors that drove the KSE-100 Index south included banking (-559.86 points), oil & gas exploration (-352.87 points) and fertilizer (-154.77 points).
Despite bloodshed at PSX, the cement sector (+205.96 points) managed to gain 6.77pc in its total market capitalization. Lucky Cement Limited (LUCK +7.00pc), Bestway Cement Limited (BWCL +6.99pc), D G Khan Cement Company Limited (DGKC +6.99pc) and Kohat Cement Company Limited (FCCL +7.00pc) accumulated decent gains.
