Review of Macro Environment by MCB Arif Habib
PSX went through a bloodbath yesterday as KSE-100 Index lost 1,302 points (2.9%) to close the day 43,830 level. This was in response to the Russian invasion into Ukraine, which led to chaos in markets around the globe, where all major stock markets tumbled and sent a shockwave across major commodities like Oil (8%), LNG (7%), wheat 11%), coal (2%) and metals like (Aluminum 6% and Gold 4%). Here we will discuss what this crisis holds for our economy and PSX investors. Russia is a major player in Energy Market Russia is one of the largest exporters of crude oil and the biggest natural gas supplier to the European Union. Any disruption in the supply of both will take their prices further north from here. Here we briefly discuss the major implication for both these commodities. Oil Crude oil supply was already turning deficient for world demand, waking up from the post Covid slumber, pushing crude oil price upto 95 per barrel even before the invasion compared to an average of USD 71 per b...