The Pakistan Stock Exchange (PSX) crashed on Thursday as the KSE-100 index fell by more than 2100 points. This is the third-largest decline in a day’s trading in the history of the PSX.
The 100-index opened at 45, 369 points and lost 4.7% of its value, 2135 points, by the close of trading.
Alpha Beta Core CEO Khurram Schezad while talking to Geo said that the main reason behind this catastrophe was the record high import bill which had dented investor sentiment. He explained that the import bill was much more than what was expected in the market which took the investor by surprise and they sold their stock in haste.
He added that not all was bad news as the international market had seen a sharp decline in oil prices and energy and food supply will improve in the coming months hence easing the pressure on the negative current account balance.
A stock market crash is a rapid and often unanticipated drop in stock prices. A stock market crash can be a side effect of a major catastrophic event, economic crisis, or the collapse of a long-term speculative bubble. Reactionary public panic about a stock market crash can also be a major contributor to it, inducing panic selling that depresses prices even further.