Pakistan’s stock market stayed under pressure as investors avoided new buying due to rising global oil prices and concerns about possible disruptions to Saudi oil shipments through the Bab el-Mandeb Strait.
The Pakistan Stock Exchange (PSX) remained under pressure on Wednesday as the benchmark KSE-100 Index fell below the 176,000-point level during trading. The index lost 691 points and traded at 175,441 points.
Investors stayed cautious because global oil prices continued to rise. Pakistan imports most of its oil. Higher oil prices can increase the country’s import bill, raise inflation and put pressure on foreign exchange reserves.
Oil Shipment Concerns Affect Market Sentiment
Investor confidence was also reduced because of concerns related to Saudi oil shipments through the Bab el Mandeb Strait. Reports showed that Saudi crude oil shipments through the route have slowed after Houthi threats against Saudi-linked vessels.
The Bab el-Mandeb Strait is one of the world’s busiest shipping routes. Any disruption can reduce global oil supplies and keep oil prices high.
The route has become more important after shipping patterns changed because of tensions around the Strait of Hormuz. Higher oil prices could increase Pakistan’s import bill and add pressure on inflation. These concerns continued to influence trading at the Pakistan Stock Exchange.
The latest decline adds to the pressure already seen in recent trading sessions.
