KARACHI:
The KSE‑100 index continued its decline, falling 3.5% (6,439 points) week‑on‑week to close at 175,803, as heightened regional tensions sparked broad‑based selling and a sharp 6,408‑point drop on Tuesday.
The PSX opened the week in negative territory, with the KSE‑100 losing 2,315 points (‑1.27%) to close at 179,927. Heightened selling persisted on Tuesday, driving a 6,408‑point decline (‑3.56%) and bringing the index down to 173,519.
Mid‑week, the exchange recovered modestly; on Wednesday the KSE‑100 rose 1,767 points (+1.02%) to 175,286. A further gain of 2,838 points (+1.62%) on Thursday lifted the index to 178,124. However, profit‑taking on Friday reversed those advances, and the week closed with a 2,321‑point decline (‑1.30%) at 175,803.
Arif Habib Limited (AHL) reported that the KSE‑100 settled at 175,803, down 3.5% week‑on‑week (‑6,439 points). Early‑week volatility saw the index lose 2,315 points on Monday and an additional 6,408 points on Tuesday amid heightened geopolitical uncertainty.
Investor sentiment rebounded after President Trump’s withdrawal of a proposed 20% transit fee on the Strait of Hormuz, but renewed regional tensions later in the week erased those gains.
Gas output slipped 1.3% week‑on‑week to 3,058 mmcfd in the first week of July 2026, driven primarily by reduced production at the Mari and Shewa fields. Shewa’s output fell sharply from 59 mmcfd to just 15 mmcfd following disruptions linked to an SNGPL pipeline rupture. Conversely, oil production rose 2% week‑on‑week to 71,579 bpd, according to Arif Habib Limited (AHL).
Auto sales—encompassing cars, light commercial vehicles, vans and jeeps—climbed 30% month‑on‑month to 22.7 k units in June 2026, up 4% year‑on‑year, while cumulative FY26 sales rose 33% to 206 k units. Large‑scale manufacturing (LSM) output fell 1% year‑on‑year in May 2026 but recovered 1.2% month‑on‑month. Over the first 11 months of FY26, the LSM index surged 5.8%.
Auto financing grew 38% year‑on‑year to Rs382 billion in June 2026, up from Rs277 billion a year earlier, and edged higher 3.4% month‑on‑month. Pakistan’s trade deficit expanded to $4.7 billion (+62.4% YoY) in June 2026, as exports fell 9.1% to $2.3 billion while imports surged 29.4% to $6.9 billion. The cumulative FY26 deficit rose 22% to $39.6 billion.
Technology exports reached a record $4.6 billion in FY26, a 21% increase that accounted for 46% of total services exports. Total liquid foreign‑exchange reserves fell to $23 billion, down $1.313 billion; of this, State Bank reserves declined to $17.23 billion, a drop of $1.245 billion, according to Arif Habib Limited (AHL).
Syed Danyal Hussain of JS Global noted that the KSE‑100 extended its losing streak, dropping 3.5% (6,439 points) week‑on‑week as rising regional tensions dampened investor sentiment and lifted Brent crude to a one‑month high of $85 per barrel. Macro‑economic data showed a current‑account deficit of $649 million in June 2026, bringing the FY26 cumulative CAD to $139 million, largely driven by a sharp 22% year‑on‑year surge in imports that widened the monthly trade deficit.
In addition, LSM output contracted 0.98% year‑on‑year in May 2026, though the cumulative 11‑month FY26 growth stayed strong at 5.77%. Fiscal‑policy highlights included the government retiring a record Rs2.9 trillion of domestic debt ahead of schedule during FY26 and pursuing a $6.7 billion, 15‑year oil‑financing facility from Saudi Arabia at a concessional rate of 1% for energy security. Meanwhile, the power sector missed its end‑June circular‑debt target of Rs1.614 trillion, with the stock rising to Rs1.835 trillion, Hussain added.
