KARACHI: The Pakistan Stock Exchange (PSX) continued to decline for the third consecutive session on Wednesday amid rising tensions in the Strait of Hormuz. This situation drove oil prices upward, intensifying inflationary pressures.
These developments pose significant risks to the economic outlook, as rising production costs amid anticipated interest rate hikes to curb inflation could further dampen already depressed industrial and trading activity and temper hopes for an economic revival.
The rising import costs and subdued export performance widened the country’s trade deficit in the first two months of the current fiscal year, further straining foreign exchange reserves amid large external debt obligations.
Topline Securities Ltd said the benchmark KSE-100 index fell 698.56 points, or 0.40 per cent, to close at 171,943.60, after trading between an intraday high of 173,174 and a low of 171,802.
Crude oil and inflation spike trigger selling
