KARACHI: Trading in the outgoing week started on a positive note as Russia and Ukraine began negotiations to resolve the military conflict.

However, their talks broke down and caused a surge in global crude oil prices, which crossed $114 per barrel, according to Arif Habib Ltd.

The announcement of an industrial package by the prime minister triggered buying in the middle of the week. But the positive momentum could not sustain itself for long as the market plummeted over the growing commodity prices.

Furthermore, the trade deficit rose to $32 billion, increasing 82 per cent in the first eight months of 2021. Similarly, inflation rose more than 12pc year-on-year in February, keeping the index under pressure. As a result, the stock market closed at 44,551 points after gaining 567 points or 1.2pc from a week ago.

Sector-wise, positive contributions came from oil and gas exploration (402 points), technology and communication (129 points), fertiliser (95 points), chemical (24 points) and power generation and distribution (19 points).

Sectors that contributed negatively were cement (67 points), oil and gas marketing (12 points), insurance (12 points), automobile assembling (11 points) and leather and tanneries (eight points).

According to AKD Securities, global commodities and the Russian-Ukraine conflict will continue to dominate investors’ sentiments in the coming week.

“The central bank is also expected to announce its second monetary policy of the year during the next week where the street consensus is split between the status quo and a hike of 50 basis points. We advise investors to closely track the news flow regarding the international commodity prices and take a longer-term view of the market instead of opting for any short-term trading strategy,” it said.

Published in Dawn, March 6th, 2022