The Pakistan Stock Exchange (PSX) showed signs of recovery as trading began after the imposition of market halt, just minutes after the trading session began on Friday after the KSE-100 Index dropped over 1,600 points.
At the time of filing this report, the KSE-100 Index was being traded at 35,244.16 points showing a decline of 712.53 points and a percentage drop of 1.98pc, the bourse managed to show upward trend after trading resumed, recovering over 900 points.
It may be mentioned here that in market halt was triggered at 9:25 am for 45 minutes, after a 4pc decline in KSE-30 Index. The Index lost 1682.96 points in the opening minutes of the trading before the PSX regulation was implemented.
A similar situation was witnessed on Thursday, PSX nosedived due to panic selling. The PSX had to trigger a market halt for 45 minutes during intra-day trading for the second time this week. The KSE-100 Index plunged by 1,716.56 points or 4.56 percent to close at 35,956.69 points. Daily trading volumes on the ready counter increased to 230.698 million shares as compared to 217.634 million shares traded Wednesday.
Black Friday at global stock markets
Global stock markets crashed on Friday, ending a years-long bull run, with coronavirus panic selling hitting almost every asset class and leaving investors nowhere to hide. Half a trillion dollars in liquidity from the U.S. Federal Reserve and the promise of more were not enough to calm the fear that has wiped some $14 trillion from world stocks in a month.
Governments and central banks readied more emergency measures to tackle the economic impact of the coronavirus on Friday as Asian markets suffered their worst weekly crashes since the 2008 financial crisis.
"Central bank meetings dominate next week's economic calendar in Asia. The question is not whether they will cut rates again, but by how much," ING economist Prakash Sakpal said in a separate note, quoted Reuters.
ING economists expect the People's Bank of China to cut the loan prime rate by another 10 basis points next week.
The COVID-19 disease has now infected almost 135,000 and killed more than 4,900 worldwide, mostly in China, where the coronavirus originated, but the country has been reporting fewer new cases, suggesting the peak of infections there has passed.