KARACHI: The Pakistan Stock Exchange (PSX) on Tuesday failed to maintain the upward trajectory and dropped by over a thousand points as a global oil glut affected regional equity markets.
The benchmark KSE 100 index dropped by 1076.82 points, a significant decline of 3.21% and closed at 32,422.83 points. The bourse dropped by 747.56 points right after trading opened before it regained momentum and reached the highest level of 33,499.65 points. Soon after, the indices kept falling before trading was suspended. The total volume of shares was 266.22 million valued at Rs13.833 billion.
Meanwhile, the lower bench KSE 30 index also dropped by 578.44 points (-3.91%) and closed at 14,233.23 points. The total volume of shares traded at the bourse were 177.680 million. It was a mixed day and bulls and bears struggle to regain control of the stock market. The top advancers which saw a rise in share prices included DGKC (1.00%), PIOC (7.49%), CHCC (5.88%), Engro Fertilizers (3.16%) and Hum Network (6.44%), while MLCF (-0.96%), Fauji Cement (-4.15%), Hascol (-7.48%), Unity (-5.34) and K-Electric (-4.59%) also a decline in oil prices.
The global oil market was in turmoil after US crude dropped to below zero for the first time as the coronavirus pandemic worsens the supply glut. The West Texas Intermediate, the US benchmark for crude oil, once again dropped to minus $3.12 per barrel.
This sent global equity markets spiraling as investors fretted that the news could compound a global economic downturn due to coronavirus pandemic. Brent crude, the international benchmark, also dropped to an eighteen year low of $18.10 per barrel before shooting back up. This had a profound effect on local stock market.
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