Coronavirus: Pakistan Stock Exchange hit hard

Karachi (29th Feb, 2020): Pakistan stock exchange drops under as a consequence of the coronavirus outbreak in Pakistan. 

According to reports, the Pakistan Stock Exchange dropped down to a ‘three-year’ low on Saturday. It reportedly feel to an almost 2,265 points in the span of one week following the spread of coronavirus in Pakistan while, the KSE-100 index has dropped to 37,983 point level which is approximately 5.6 percent. Sources confirm that investors have suffered the loss of about four hundred and thirty-six billion, respectively.

Markets slide on fears of virus spread

The Pakistan Stock Exchange (PSE) reportedly experienced its biggest ‘intra-day’ fall on the 27th of February, 2020 after media sources confirmed reports of the first coronavirus case in Pakistan. Moreover, the KSE-100 index which is used to gauge a measure of the market performance also fell by about 1,400 points or 3.5 percent in a matter of two hours.

According to reports, this was the biggest single-day fall experienced by the PSE one year after the Pakistan Air Force shot down an Indian fighter jet, Wing Commander, Abhinandan Varthaman. It is to be noted that, the Pakistan government confirmed its first two cases of the novel virus on Wednesday which caused the public to become gravely concerned about the spread of COVID-19.

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It is being reported that investors have globally ‘resorted to selling’ their investments in lieu of the virus spread and turned to gold. Countries including Italy, France, Germany, Denmark, Kuwait, Brazil, UAE, US, Canada, Australia and others have also reported cases of coronavirus apart from Pakistan. However, based on report, South Korea and Iran seem to be the hardest hits of the coronavirus epidemic.

Based on latest reports, the Islamic Republic of Iran and South Korea have reported the most number of fatalities after China, which is largely the epicenter of the virus outbreak. The ‘spillover’ effects can be observed worldwide as markets are consistently hit with reduced oil prices and stock markets following the aftermath of the outbreak. Most economies which are deeply integrated with the Chinese economy account for an almost seventeen percent of the global GDP, which is why coronavirus is a primary reason for halting economic activity the world over.

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