Stocks join world rout spurred by Russia-Ukraine conflict

Stocks on Monday were sucked into a global rout, spurred by fears of an all-out military showdown between Russia and Ukraine, a crisis that has set oil prices on fire, amid tense local political situation, traders said.

KSE-100 Share Index, the benchmark of Pakistan Stock Exchange (PSX), lost 435.28 points or 0.94 percent to end at 45,644.09 points after oscillating between a day high of 46,128.11 and a low of 45,508.14 points.

Zafar Moti, former director PSX, said the market was hit badly and moved downwards. Russia-Ukraine tension resulted in an increase in the oil prices, while at home opposition’s plans to launch a motion of no confidence against the incumbent government weighed on the market sentiment.

“Low volumes hit the market as it was looking to big players to jump in, but their cautionary approach rendered the market directionless.” If the Ukraine issue was resolved on the table, the market would react positively, Moti said.

Ahsan Mehanti, an analyst at Arif Habib Corp, said stocks slumped led by scrips across the board on global equity selloff as investors weighed in Ukraine crisis. Concerns over widening trade deficit and reports of falling cement sales amid cut in government’s development budgets, raise in industrial power tariff and political noise let the bears take over, Mehanti said.

KSE-30 Shares Index also couldn’t save itself from the overall negativity and gave up 176.66 points or 0.98 percent to 17,791.44 points against 17,968.10 points. Traded shares, however, increased 17 million shares to 187.80 million from 170.62 million, while traded value dropped to Rs5.94 billion from Rs7.72 billion.

Market capital fell to Rs7.802 trillion from Rs7.875 trillion. Out of 349 companies active in the session, 58 posted gains, 273 losses, while 18 ended unchanged. Topline Securities in a note said the equities commenced week on a negative note joining its regional peers as a result of Russia-Ukraine issue.

The index mostly remained in the red zone throughout the day as investors showed their concern over rising crude oil prices that would eventually mount inflationary pressures, the brokerage said.

Technology, banks, fertilisers, and cements saw a selling trend, where SYS, FFC, MEBL, and LUCK eroded 124 points. Some support came from MARI, SNGP, and EPCL that added 34 points collectively.

Mari Petroleum was the top performing stock of the day, as it rose Rs25.82 to Rs1,774.06 per share, followed by Khairpur Sugar, up Rs6.26 to close at Rs89.78 per share. Rafhan Maize led the losers by falling Rs495 to Rs10,405 per share, followed by Allawasaya Tex, down Rs174.38 to end at Rs2,150.73 per share.

JS Research in its market wrap said stocks started on a bearish note higher oil prices and Ukraine-Russia conflict. “Going forward, the market is likely to remain sideways with low volumes, hence, it is recommended to book profits at current levels,” the brokerage suggested.

WorldCall Telecom was the volume leader with 33.53 million shares, while Telecard Limited was the second most traded stock with 9.87 million shares. Stocks that recorded significant turnover included Ghani Glo Hol, TRG Pak Ltd, TPL Properties, Hum Network, K-Electric Ltd, Bank of Punjab, Cnergyico PK, and First National Equities. Turnover in the future contracts increased to 59.43 million shares from 44.43 million.