Karachi Stock Exchange recorded its steepest decline of 3,444 (-9.55%) points on Monday and Tuesday as cases of Coronavirus spread quickly across the country.
The pandemic created an air of uncertainty in global markets and the trickle down effects were duly noted in Pakistan Stock Exchange through investors who sought to get rid of risky shares.
In fact, the trading stopped on Monday when PSX’s second benchmark KSE-30 Index fell 5%.
The day came to a close at the following points: KSE-100 index fell by 3.17% or -1,068 points to close at 32,617.
As suggested by experts, this negative trend seems to be a result of decline in regional markets, lower commodity prices, uncertainty in the global economy and economic slowdown due to the outbreak of COVID-19.
Global markets also fluctuated after Monday’s record low and suggest that the market will remain volatile amidst the outbreak of the Coronavirus. It is expected that a global recession is soon to follow.
Stock markets in Europe were again met with a boorish trend on Tuesday: London’s FTSE 100 (UKX) was down 0.6%, and the CAC 40 (CAC40) in Paris dropped 0.3%. Frankfurt’s DAX (DAX) and Japan’s Nikkei 225 (N225) were flat.
