Stocks plunge on global oil price rout as KSE-100 closes 3.2pc in redArchive
Shares at the Pakistan Stock Exchange (PSX) were in the red on Tuesday with the benchmark KSE-100 index closing down 3.21 per cent or 1076.82 points to 32,422.83, as stock markets all over the world reacted to the upheaval in global prices for crude oil.
Speaking to Dawn.com, Head of Foreign Institutional Sales at Next Capital Limited Muhammad Faizan said: "The stock market traded in the negative zone since the start of trading amid a historic slump in international oil prices."
But cement stocks remained positive amid an environment for low interest rates, he said.
US crude oil prices bounced back into positive territory on Tuesday, a day after crashing below $0.00 for the first time owing to crippled demand and a storage glut, while the commodity rout sent Asian equities sharply lower.
West Texas Intermediate (WTI) for May delivery was changing hands at $1.10 a barrel after diving to an unprecedented low of -$37.63 in New York as the pandemic brings the global economy, transport and factory activity to a halt.
The sell-off in May futures came because the contract expires later Tuesday, meaning traders needed to find buyers to take physical possession of the oil — a job made near-impossible as storage becomes scarce.
A day earlier, bulls had gone on a rampage at the PSX, tossing the the KSE-100 index high by 667.82 points, 2.03 per cent, to close at 33,499.65.
The market had built on the strong rally seen on Friday when the first ever “upper lock” was witnessed on the back of a beeline of positive news but mainly the State Bank decision to cut policy rate by 200 basis points to 9pc.