KARACHI: The Pakistan stock market saw another week of rout as the Covid-19 pandemic continued to rock the global financial industry. The KSE-100 index slumped by 2,558 points (8.3 per cent) and closed at 28,109 in the 4-session week, cut short by national holiday on Monday.
Positive contribution in the last 2 days of trading lifted the index out of its 6-year low of 27,229. It also managed to snap the trading halts that were as many as eight in the two weeks since the new market suspension rules came into force.
The SBP Monetary Policy Committee announced another 150bps cut in the interest rate which came a week after a 75bps slash, which together brought the key rate down to 11pc.
This significant reduction in policy rate took its toll on the local currency as the rupee lost ground against the dollar. The SBP and Pakistan Bankers’ Association announced new measures to give relief to borrowers and relax rules on markup. In order to create additional liquidity for banks, the SBP reduced the Capital Conservation Buffer (CCB) from 2.5pc to 1.5pc and should enable banks to lend up to Rs800bn or 10pc of outstanding loans.”