Pak Stock Market Registers Largest-Ever Single-Day Fall, Crashes By 16,089.17 Points
Financial analyst Kaukab Farshori, with Capital Investments, said the crash occurred because of the uncertain geopolitical situation in the region: Reports
KARACHI: The Pakistan Stock Exchange on Monday posted its largest-ever single-day decline when the KSE-100 benchmark crashed by 16,089.17 points. The KSE-100 index had come down to 151, 972, 2.99 points down, marking a 9.57 decline from its previous close, the largest loss in a single day in the history of the Pakistan Stock Exchange.
Financial analyst Kaukab Farshori, with Capital Investments, said the crash occurred because of the uncertain geopolitical situation in the region.
He termed it as "overreaction" in the market because of selling by a few funds and new leveraged players.
Due to the month of Ramazan, the PSE operates half a day, but due to the sudden drop in points, trading was suspended temporarily around noon.
Kaukab said when the market closed last week, it was already volatile because of the conflict in the region.
The Pakistani government has also increased the prices of petroleum products for the next 15 days, starting on Saturday.
When trading began on Monday at 10:30 am, the index had lost 12,334,88 points from its previous close of 168,062.16 points, signalling a fall of 7.34 per cent.
As the index is dropping, some investors have also tried to take advantage of the situation, with some shares down, according to other financial analysts.