Pakistan Stock Exchange and the COVID-19 Outbreak (COVID-19 Blog)

Due to the outbreak of COVID-19 in Pakistan, and the resultant disruption to business operations, the Pakistan Stock Exchange (PSX) posted record losses as the Coronavirus scare weighed heavily on investor sentiments. The Covid-19 pandemic has brought volatility in the global markets and created uncertainty among investors. The market has faced a six-year low intra-day value and reduced its value by 28 percent this year. For investigating the impact of COVID-19 on share prices, we have selected six major sectors of PSX, namely commercial banks, oil and gas exploration companies, food and personal care products, tobacco, fertilizer and cement. Based on the market capitalization of the PSX these six sectors have more than 60% weight in the total value of PSX as shown in Fig-1.