The Pakistan Stock Exchange (PSX) remained under pressure on Friday as rising international oil prices amid the US-Iran conflict raised concerns over higher domestic fuel prices, fuelling inflationary pressures and fears of a possible interest rate hike.
The benchmark index touched an intra-day low of 166,141.17, down 2,723.87 points, or 1.61%, from the previous close of 168,865.04.
During the session, the KSE-100 index hit an intra-day high of 167,748.91, but remained 1,116.13 points down from the previous close of 168,865.04.
Ismail Iqbal Securities Chief Executive Officer Ahfaz Mustafa said the market was facing pressure from rising international oil prices amid the US-Iran conflict and the resulting increase in petroluem prices locally.
“The rise in energy costs will push inflation up, and participants are pricing in a slight chance of a rate hike in the next monetary policy,” he said.
Oil prices rose on Friday, and both major benchmarks are on track to end the week above $100 a barrel for the first time since mid-May.
Brent crude climbed to a four-month high of $109.97 a barrel on Friday after a 6% overnight jump, capping a weekly gain of nearly 13%.
Houthis seized control of Yemen’s port of Mocha on Thursday, posing a further threat to Red Sea traffic, while Gulf traffic remains restricted through the Strait of Hormuz as tanker attacks in the region have intensified in recent days.
Attacks from Yemen on Saudi energy facilities marked an escalation beyond Iran and the Strait of Hormuz and raised fears of prolonged disruptions in the broader region, say analysts.
— With input from Reuters
