It was carnage for global equities on Thursday.

Like its peers, the Pakistan Stock Exchange (PSX) felt the effects of Russia's 'special military operation' in Ukraine as the benchmark KSE-100 tumbled nearly 1,200 points (over 2.5%) during intra-day trading.

At the time of this report, the benchmark index was hovering around 43,977.35, down a massive 1,155.57 points for a fall of 2.56% with under two hours left in the session.

Investors reacted after Russian President Vladimir Putin authorised a military operation in eastern Ukraine on Thursday in what appeared to be the start of war in Europe over Russia's demands for an end to NATO's eastward expansion.

The development pushed oil over $100, raising inflationary concerns for a net-importer like Pakistan. Oil breached $100 a barrel for the first time since 2014 as Russia moved troops into Ukraine, sparking concerns that a war in Europe could disrupt global energy supplies.

“Investors are reacting to the impact of Russia-Ukraine escalation," said Tahir Abbas, Head of Research at Arif Habib Limited (AHL). “Globally, it is very concerning as in Europe this is the first such escalation after World War II. For Pakistan, rising oil prices will add pressure on the external front,” he added.

KSE-100 posts recovery, up 0.27%

Samiullah Tariq, head of research at Pak-Kuwait Investment Company, told Business Recorder that the conflict has also raised rates of several commodities worldwide, putting pressure on equities.

Meanwhile, Pakistan Prime Minister Imran Khan is currently in Russia, having reached for a two-day visit during which he is scheduled to hold bilateral meetings with Putin and other officials.

PM Imran was received by Russia's Deputy Foreign Minister Igor Morgulov upon reaching Moscow, the Prime Minister's Office (PMO) said in a Twitter post.

A delegation of ministers is also accompanying the premier.

This story was first published in Business Recorder on February 24, 2022.