Stock markets all over the world jolted inadequately owing to the outbreak of coronavirus. International oil prices fell by about 10 percent.
Global stocks observed the worst quarter since 2008, the world’s biggest economies went for lockdown and well aware of the outcomes. The US stock market witnessed the biggest fall since 1987 and London’s FTSE 100 has suffered the massive fall touched to the 1980’s mark.
The gloomy vibes touched Pakistan’s stock market and it took the worst downturn in a single month of March 2020. Pakistan stock market started the year 2020 with 41,400 points after the roller coaster performance and gain of 2 thousand 700 points during 2019, which was led by the government’s measures to stabilize the economy and IMF’s satisfaction over Pakistan’s economic improvement.
At the start of February stock market stood at 40,409 points, however, the reports of the rapid COVID-19 spread dragged benchmark index from 40 thousand to 37 thousand points till the end of February 2020 (loss of more than 2 thousand points).
The stock market took a breath on 2nd March with a surge of 1,312 points (3.4%) amid of lower than expected inflation rates which later followed by the massive fall. Benchmark index lost 1,162 points on 6the March and 1,160 points on the 9th of March, even the market remained halted during this biggest one-day drop. The collapse witnessed in the course of coronavirus panic and oil prices war between Russia and Saudi Arabia as well.
Moreover; the coronavirus outbreak declared as a pandemic by the World Health Organization (WHO) on 11 March and the Stock market again jolted by the losing 1,716 points on 12th of March and 2,375 points on 16th of March which was the biggest drop of history in a single day, (6%), this massive selling pressure led the market to a four-month low.
Benchmark index started with 38,077 points and ended the month with 29,231 points, during March, the KSE-100 index contracted 23% (-8,800 points) and total eight market halts – the biggest negative return since December 2008.
The Economic Coordination Committee (ECC) on 30th March approved Rs1.2-trillion economic relief package to help cover the economic loss from effects of the coronavirus pandemic, which made quarter ending at positive note for the Stock market.
However; the first quarter (January – March 2020) painted a gloomy picture for the stock market where investors are bearing a loss of billions of rupees. Sadly this is not over yet; further lockdown and the Corona fear can make the scenario worse.
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