Stocks plunge as Russia invades Ukraine

KARACHI: Stocks plunged with global equities after Russia invaded Ukraine, leaving markets bracing for the worst as commodities, especially crude oil prices smashed records, raising world economic uncertainties, traders said.

Pakistan Stock Exchange's (PSX) benchmark KSE-100 Shares Index lost a massive 1,302.41 points or 2.89 percent to close at 43,830.51 points against 45,132.92 points recorded in the last session, testing a day high of 45,132.92 points and a low of 43,792.17 points.

Zafar Moti, a former director of PSX, said Russian military escalation on Ukraine toppled the world capital markets from Hong Kong to Europe, as well as the US, which fell like house of cards as the President Vladimir Putin blew the war-horn in a televised address to nation.

“A myriad of negative developments is underway. Rising local political mercury, crude oil spike, runaway inflation, etc amid fears of a rate hike in the next monetary policy are weighing on the stocks,” he said adding as a result a level of 44,000 points was broken on Thursday.

“War is likely to continue and both parties are not ready to sit at the negotiation table, which may increase not only oil, but also gold prices.”

Moti said PM’s visit to Russia could have brought some positivity but in the event the war prolongs, the sentiments would hit rock bottom.

Ahsan Mehanti at Arif Habib Corp said stocks were battered across the board amid heavy trades after Russian assault on Ukraine led to a global equity selloff.

Foreign selling and investor concerns over the economic impact of the record surge in global oil prices mainly devastated the stock market from all sides, he said.

Following the overall negative trend, KSE-30 Shares Index took a massive hit of 534.12 points or 3.04 percent to 17,049.99 points against the closing of 17,584.11 points on Wednesday.

Traded shares swelled by 164 million to 350.05 million shares from 186.35 million shares, while value increased to Rs8.752 billion from Rs6.802 billion. Market capitalisation reduced to Rs7.498 trillion from Rs7.702 trillion. Out of 377 companies active in the session, only 36 advanced, 317 retreated, while 24 ended without as they had opened.

Topline Securities Ltd in a note said it was a bloodbath at the apex bourse as Russian military aggression on Ukraine pressed the market to open sideways, the brokerage said in its daily market review.

Major negativity came from HBL, LUCK, SYS, TRG, and ENGRO, which cumulatively dented the Index by 381 points.

Bhanero Textile was the top gainer of the day as it managed to snap up Rs74 to close at Rs1,325 per share, followed by Rafhan Maize that grabbed Rs200 to end at Rs10,500 per share.

Bata (Pakistan) XD was the loss leader of the day, shedding Rs109 to finish at Rs1,990 per share, while Nestle Pakistan turned out as the second most battered stock of the session after its share value was stripped of Rs200 and closed at Rs5,400 per share.

Giving its analytical view on Thursday’s massive losses, JS Research said the trading day commenced with the news of Russia's intervention in Ukraine, which dragged the market down big time.

“Going forward, range-bound activity is expected primarily because of the geopolitical situation and higher commodity prices,” the brokerage said.

Flying Cement (R) led the volumes chart with 38.42 million shares, closely trailed by WorldCall Telecom that printed a trade turnover of 33.13 million shares.

Hum Network, K-Electric Ltd, Cnergyico PK, Agritech Limited, Fauji Cement, Bank of Punjab, Telecard Limited, and Ghani Global Holdings were among the major volume-makers.

Trade in the future contracts slumped to 180.26 million shares from 209.86 million shares.