Impacts of Covid-19 on the Financial Market of Pakistan

The COVID-19 epidemic could go down as an important picture of an unnoticed danger in history. The main concern of policymakers and corporate decision-makers has centered on convention lay market risk outlet and the climate sensitivity issues.
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The COVID-19 epidemic could go down as an important picture of an unnoticed danger in history. The main concern of policymakers and corporate decision-makers has centered on convention lay market risk outlet and the climate sensitivity issues. Most prominent personal life disturbances are occurring like lockdown situations in Pakistan and other major parts of the world. Indeed there are acute disasters in illness and death. There is an enveloping fear like the mass purchase of daily goods.

There is an unpredictable situation in terms of the economic influence of covid 19 in the country as it is still not clear about the propagation of the pandemic, its mortality rate and extent, human behavior, and Policy Responses. The estimation of economists for the covid 19 is to decrease the global economic development by on average 0.15 percentage points in last year. That is translated into $135 billion of unproduced postponed produces and services.

In Pakistan, the fourth layer of coronavirus is influencing the entire country in terms of different sectors. Currently, the effect would be counted by three things, first is how instantly the virus travels and how it will last. Secondly, the concern affects consumer buying, trade, and production, and last but not least what steps should be taken by policymakers to prevent the spread of the virus and enhance productivity.

In this situation, the equity market facilitates a beneficial opportunity to consider. The creditors are especially impacted by the indirect and direct consequences of the virus outburst by the finding of companies. That is the reason, the equity exchange allows a consistent monitored and welcomed overview of what the market perceives may eventually be affected by the economic effect of the pandemic.

Pakistan stock exchange has started to trade on a bearish note with the targeted KSE-100 index recording its huge fall since 2009. Because of the increasing number of corona cases, the KSE 100 index has lost about 1336.03 percentage drops of 4.68 and touched an intraday low at 27228.80 points.

Several businesses are suffering the crisis, whereas few are having profit. It is clear to see that many sectors are enduring greatly like leisure, airlines, hostelling, and transportation that are considered as definite losers.

The unpleasant raw return created by all the companies specifically, chemical, automobiles, banks, transportation, and power suffered a lot through this pandemic in terms of financial performance. The companies that compete in the medical field are the real winners in other countries and Pakistan also. In Pakistan, the goods, services, and utility sectors performed exceptionally as compared to other industries.

Most sectors were affected dramatically due to the severe condition of businesses in Pakistan that ultimately decreased the returns and profitability of the company. Therefore, if you are planning to invest in any company then you need to check the impact of a pandemic on the financial performance of the company so that you do not have much risk to bear the loss.

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