Pakistan’s Stocks Fall, Rupee Weakens Amid Global Sell-Off

(Bloomberg) --

Trading in Pakistan’s stock market was halted for 45 minutes on Monday morning, with the losses triggering exchange rules as panic gripped global financial markets after a price war in crude added to the backdrop of dread surrounding the coronavirus.

The nation’s benchmark KSE-100 index plunged as much as 6%, the most since 2006, in Karachi as top oil shares fell by limit. The market recovered some losses to close down 3%. Pakistan’s rupee also fell 1.5%, most in eight months, to 156.5871 a dollar at close, according to central bank data.

Global markets are in turmoil after crude sank more than 25% in the deepest rout since the U.S.-led war in Iraq in 1991. Volatility has been rampant in markets around the world amid a virus outbreak that has infected 108,000 people and killed more than 3,700. Futures on the S&P 500 Index fell about 5%, triggering trading curbs.

“Pakistan has been no exception to the meltdown. Investors have been in a panic following slump in global markets and the oil price crash,” says Faisal Bilwani, head of international sales at Alfalah CLSA Securities Pvt., who predicted that the market would be halted.

Pakistan’s KSE-30 dropped more than 4% in the morning that triggered the market halt seven minutes into the trading session. The rule was introduced this year to help calm volatility after stock swings.

To contact the reporter on this story: Faseeh Mangi in Karachi at fmangi@bloomberg.net

To contact the editors responsible for this story: Arijit Ghosh at aghosh@bloomberg.net, Khalid Qayum, Anto Antony

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