Pakistan stocks make slow recovery after crash

Pakistan's stock market plunged 2,106 points after the starting bell on the first day of the trading week, forcing authorities to halt trading for 45 minutes to cushion the tumbling share prices.

The Pakistan Stock Exchange's (PSX) benchmark Karachi Stock Exchange 100-Share Index tumbled 2,106.78 points or 5.51 per cent to reach 36,112.89 points in the morning session, when trading was paused.

As per local rules, trading is halted for a brief breather if the index falls 4.5 per cent or more.

The trading started at 10.24 a.m but stocks continued to slide to reach the largest ever intra-day plunge in Pakistan's history when by 10:35am, the index was 2,302 points down at 6.02 per cent.

The plunge surpassed the previous highest intra-day loss which was 5.16 per cent recorded on February 25, 2009.

But market turned bullish by the end of the day and the KSE-100 index closed at 37,054 points, down 3.12 per cent or 1,165 points.

The abrupt slide was due to the falling oil prices in the international market and its domino effect of world markets.

Other factors include suspension of imports from China and its adverse effect on the Asian economy have restricted the stock market to grow.