The Pakistan Stock Exchange (PSX) closed the week in negative territory as investors locked in gains following a steady upward trend. The benchmark KSE-100 index fell 0.18% (264.34 points) on Friday, settling at 145,382.79—down from the previous session’s close of 145,647.13. Analysts attributed the decline to profit-taking, with Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, noting, “The market was continuously increasing for some days.”
Despite the drop, the index had shown resilience earlier in the session, hitting an intraday high of 146,813.43 points—a gain of 1,166 points (0.8%)—before retreating. Volatility persisted as the index also touched a low of 144,917.18, reflecting cautious investor sentiment.
Meanwhile, Pakistan’s foreign exchange reserves continued their downward trend, with the State Bank of Pakistan (SBP) reporting a third consecutive weekly decline. As of August 1, the central bank’s reserves fell by $72 million to $14.232 billion, primarily due to external debt repayments. Total liquid reserves dropped by $111 million to $19.496 billion, while commercial bank reserves decreased by $39 million to $5.264 billion.
In July, Pakistan’s trade deficit expanded sharply by 44% year-on-year to $2.8 billion, driven by a 29% YoY surge in imports to $5.4 billion. Exports also grew, rising 17% YoY to $2.7 billion, but the increase was outpaced by import demand. With forex reserves under pressure and market volatility persisting, investors remain watchful of economic indicators in the coming weeks.