The world is in a state of emergency since the outbreak of the coronavirus. It was first discovered in the Chinese city of Wuhan back in the month of January. It is believed to have originated from the illegal consumption of wild animals sold in China’s marketplaces.
Coronavirus affects global trade, becoming a threat to business as well!
Until today, the virus has affected more than 80,000 people causing 2600 casualties. it is believed to have spread to no less than 43 countries now. To make the matters worse, scientists are still not able to find a cure for the novel coronavirus CCVID-19.
The overall situation has only paved the way for the world to fall into a state of panic. Almost all neighboring countries of China except for Pakistan have reported at least one case of coronavirus till now. Borders are sealed off and airports now look like a quarantined zone. Passengers traveling in or out are checked at regular intervals.
The novel coronavirus is also disrupting global trade!
As we all know that China is a juggernaut when it comes to manufacturing goods for the world. It can be said with absolute certainty that China was handling at least half of the world’s manufacturing responsibilities. The spread of the coronavirus has surely affected its dominance in that regard. It is believed that since the outbreak China has halted a majority of its exports. Entire shipments are laying stranded on the ports costing millions.
The affects of Coronavirus on the stock market!
This sudden spread of the deadly virus has literally disrupted almost all corners of our lives. The state of panic and the countries’ reluctance to let possibly affected goods into their territory is severely affecting the global economy. On Monday, the global financial market saw some of the sharpest falls in years. These renewed fears from the coronavirus are indeed causing a massive economic slowdown.
The effects of which were experienced in the Karachi Stock exchange as well!
On Wednesday, the KSE-100 index which is a benchmark for market performance fell over 600 points in intraday trading. The investors are now in a state of panic as the KSE-100 has maintained a downward trajectory. They have now resorted to offloading stocks.
Arif Habib Limited Head of Research Samiullah Tariq said:
“The combined impact of the virus, weak regional markets, lower oil prices and deadlock with the International Monetary Fund (IMF) fuelled the bearish trend at the Pakistan Stock Exchange”.
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