PSX Consolidates at 145,000 Points After 7-Week Winning Streak

KARACHI, August 8, 2025 – The Pakistan Stock Exchange (PSX) experienced a slight pullback on Friday, ending the week with modest losses after an impressive seven-week winning streak. The benchmark KSE-100 Index closed at 145,383 points, down by 264 points or 0.18%, as traders engaged in profit-taking amid caution over economic indicators.

Market Takes a Breather After Record Surge

Following weeks of strong upward momentum, the market paused near the 145,000-point mark, a psychological level closely watched by investors. This consolidation phase comes after a remarkable climb that saw the index gain over 4,300 points during the past seven weeks, signaling strong investor participation and market resilience.

According to Arif Habib Ltd Deputy Head of Trading, Ali Najib, the cooling-off period was largely influenced by the latest update from the State Bank of Pakistan (SBP), which reported a $72 million decline in foreign exchange reserves. The reserves now stand at $14.23 billion as of August 1, marking the third consecutive weekly drop. Analysts attribute the decline to ongoing external debt repayments, which have placed mild pressure on market sentiment.

Why Investors Opted for Profit-Taking

Market participants showed restraint as multiple economic factors came into play. Rising government bond yields, fresh trade data, and signals from monetary policy discussions prompted selective selling in key stocks. Profit-taking was especially notable in heavyweight counters, which have been the primary drivers of the recent rally.

Blue-chip companies including Engro Fertilisers, Lucky Cement, Systems Limited, Mari Petroleum, and Hubco collectively erased around 399 points from the index. On the other hand, renewed buying interest in Engro Holdings, Fauji Fertiliser Company, Oil and Gas Development Company (OGDC), and MCB Bank added 426 points, helping the market cushion deeper losses.

Trading Volumes and Market Activity

Despite the modest drop in index value, market activity remained steady. Total trading volumes reached 548 million shares, while the overall traded value stood at Rs45.5 billion. Pakistan Petroleum Limited (PPL) emerged as the most actively traded stock, with 22 million shares changing hands during the session, underscoring investor confidence in the energy sector.

Seven Weeks of Gains Still Intact

Friday’s decline did little to erase the market’s robust performance in recent weeks. Over the course of the week, the KSE-100 Index gained 4,348 points, or 3.08%, extending its winning streak to a seventh consecutive week. The week began at 141,963 points, reached an intra-day high of 146,813 points, and dipped to a low of 141,441 before settling at 145,383 points.

Analysts Expect Consolidation Ahead

Market strategists anticipate a period of consolidation in the coming sessions. With 145,000 points acting as the immediate support level, analysts believe the next key support could be around 143,000 points. Resistance is expected near the 150,000 mark, which remains a significant psychological barrier for investors.

Short-term trading patterns are likely to be influenced by macroeconomic updates, changes in foreign reserves, and global market cues. Any signs of economic strengthening, such as improved export numbers or reduced external debt pressures, could revive bullish momentum.

Key Factors Driving the Market

Foreign Exchange Reserves: The $72 million weekly drop in reserves continues to be a cause for cautious trading.
Bond Yields: Rising government bond yields have drawn some investors away from equities.
Trade Data: Fresh import-export figures and their implications for the current account balance influence sentiment.
Monetary Policy Signals: Market expectations about interest rate changes shape investment strategies.

Outlook for Investors

For long-term investors, analysts suggest that the current consolidation phase could present selective buying opportunities. Sectors such as energy, banking, cement, and fertilisers remain attractive due to strong fundamentals and consistent dividend payouts.

However, traders with short-term positions are advised to monitor resistance and support levels closely, given the possibility of mild corrections before the market attempts another upward breakout.

Conclusion

While the Pakistan Stock Exchange paused after its remarkable seven-week run, the underlying sentiment remains cautiously optimistic. Friday’s modest decline is being viewed more as a healthy breather than a reversal, as market fundamentals continue to show resilience. With 145,000 acting as a strong support level, the coming days will reveal whether the PSX can gather the momentum needed to challenge the 150,000 mark.

Investors, analysts, and market watchers will keep a close eye on economic data, SBP’s foreign reserve updates, and global market movements to gauge the next phase of Pakistan’s equity market journey.