Karachi Stock Exchange Drops 500 Points Within An Hour!

On Tuesday, the KSE 100 index fell by 500 points not long after trading began for the day.

The drop comes not long after two directors and CEO of AKD Securities were arrested for manipulating an EOBI scheme in 2010, which led to the national exchequer losing out on Rs. 250 million.

The trading session on Tuesday started with an index on 33,009.13 but within an hour it fell to 32,515.05, 494 points or 1.5 percent.

Karachi Stock Exchange Drops 500 Points

After that the index managed to recover by 133 points up to this point at time, but it still remains at 361 points lower than at the start of the day’s trading.

The KSE-100 index was largely haphazard the day before, keeping in mind global trends, with several adverse items all across the news which made equity investors hesitant to trade.

Chinese stocks dropped 7 percent in the first trading session of the year, mainly because of weak data. Similarly, investors were also cautious because of escalations in political tensions between Saudi Arabia and Iran. Markets in the United States and Europe also joined the selloff, and combined with the downwards pressure caused by Chinese stocks, this led to a drop in the value of the overall index.