Aaj News

KSE-100 feels the heat as Russia-Ukraine tension rises, index down over 1%

Escalating tension between Russia and Ukraine took toll on investor sentiment at the Pakistan Stock Exchange (PSX),...
Updated 22 Feb, 2022 03:36pm
File: Photo
File: Photo

Escalating tension between Russia and Ukraine took toll on investor sentiment at the Pakistan Stock Exchange (PSX), as the benchmark KSE-100 Index dropped over 650 points during intra-day trading.

At the time of filing this report, the benchmark index was hovering around 44,712 points, down 650.49 or 1.43%.

The negativity comes due to rising geopolitical tension, after the conflict between Russia and Ukraine took another turn.

“The geopolitical tensions have created negative sentiments among investors,” Sana Tawfik, vice-president research and a senior analyst at Arif Habib Limited (AHL), told Business Recorder.

KSE-100 falls nearly 1% on Russia-Ukraine conflict jitters

Russia’s President Vladimir Putin, during his long-televised speech yesterday, declared independence for separatists-controlled cities in the Eastern Ukraine (i.e., Donetsk & Luhansk).

Putin, in a lengthy televised address, said eastern Ukraine was ancient Russian lands and that he was confident that the Russian people would support his decision.

The development with all its political implications also took a toll on the economic front, as oil prices jumped more than $2 to a fresh seven-year high on Tuesday.

Like PSX, markets across the globe felt the impact. MSCI's broadest index of Asia Pacific shares outside Japan was on course for its worst day for this month, off 2.1%, weighed by markets in Hong Kong and mainland China. Japan's Nikkei shed 2.5%.

Meanwhile, oil prices witnessed another swift rally and Brent crude touched $97 per barrel.

“Till tensions remain, liquidity will stay out of the PSX,” Tawfik added.

KSE-100 falls below 45,400 as investor-interest remains muted

The analyst added that the upcoming visit of Prime Minister Imran Khan to Russia will not have much of an impact on market sentiment.

She added that the volatility will persist till tensions are tapered off. “However, being the corporate results season, the market will remain range-bound, unless any other major event drives sentiments,” said Tawfik.

This report was first published in Business Recorder on February 22, 2022.

For the latest news, follow us on Twitter @AajEnglishNews and @Aaj_Urdu. We are also on Facebook, Instagram and YouTube.

stock market

KSE100 index

pakistan stock exchange

Comments are closed on this story.