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Express Tribune
2 days ago
- Business
- Express Tribune
Reserves edge up, rupee gains for 4th week
Pakistan's foreign exchange reserves recorded a slight improvement during the week ended August 8, 2025, with the State Bank of Pakistan (SBP) holdings rising $11 million to $14.243 billion. According to data released by the central bank, the country's total liquid foreign reserves stood at $19.497 billion. Of this, commercial banks held net reserves of $5.254 billion, while the SBP accounted for the remaining $14.243 billion. Moreover, on Friday, the SBP injected around Rs12 trillion into the banking system through a reverse repo auction. The market operation included Rs191 billion for seven-day tenors at 11.04% and Rs11.812 trillion for 14-day tenors at 11.01%. The Pakistani rupee extended its upward momentum, marking its fourth consecutive week of gains against the US dollar. According to Ismail Iqbal Securities, the local currency appreciated 0.06% day-on-day to close at 282.06 against the greenback. On a calendar-year-to-date basis, however, the rupee has depreciated 1.25%, while in the current fiscal year to date, it has gained 0.60%. AKD Securities noted that the rupee gained for the fourth consecutive week against the US dollar. Meanwhile, gold prices in Pakistan fell, tracking global trends, where the yellow metal edged higher but remained on course for a weekly loss as hotter-than-expected US inflation data dampened prospects of near-term interest rate cuts. Market attention has shifted to the much-anticipated meeting between US President Donald Trump and Russian President Vladimir Putin. In the local market, the price of gold per tola dropped Rs1,000 to Rs357,100, according to the All Pakistan Sarafa Gems and Jewellers Association. The price of 10-gram gold also declined, settling at Rs306,155, after a decrease of Rs858. Earlier in the week, on Wednesday, gold had slipped by Rs200 per tola to Rs358,100. Interactive Commodities Director Adnan Agar noted that the gold market has seen limited movement, with prices fluctuating within a narrow range of about $10 to $15. "The market is relatively stable because of the Russia-US summit. Any significant shift will likely be seen on Monday once the outcome of talks becomes clear," he said. Spot gold rose 0.2% to $3,342.62 per ounce by 11:16 am EDT (1516 GMT), but was down 1.7% for the week, according to Reuters.
Express Tribune
01-08-2025
- Business
- Express Tribune
Reserves dip $153m on repayments
Since July 22, numerous unauthorised exchange outlets have been closed after the military intelligence agency summoned currency dealers to address the rising dollar rate in the open market. photo: file Listen to article Pakistan's total liquid foreign exchange reserves stood at $19.61 billion after a decline of $153 million for the week ended July 25, 2025 owing to debt payments, according to figures released by the State Bank of Pakistan (SBP) on Thursday. The SBP reported a decrease of $153 million in its reserves, which fell to $14.30 billion, mainly due to external debt repayments. Meanwhile, net foreign exchange reserves held by commercial banks remained stable at $5.30 billion. The combined position of the country's foreign exchange reserves stood at $19.61 billion, reflecting the continued impact of external financial obligations on the central bank's holdings. Furthermore, the Pakistani rupee continued its positive momentum against the US dollar on Thursday, with a slight appreciation of 0.03% in the inter-bank market. By the end of trading, the rupee reached 282.87, marking an increase of 8 paisa from the previous day's close at 282.95. Though the rupee appreciated by 0.03% day-on-day against the greenback, it has depreciated by 1.53% in the calendar year to date (CYTD) and appreciated by 0.32% in the fiscal year to date (FYTD), according to Ismail Iqbal Securities. The local currency has benefited from a government crackdown on illegal dollar trading, which has bolstered its value. However, traders report that black market activity has quickly adapted, shifting to digital platforms and discreet home delivery services. Since July 22, numerous unauthorised exchange outlets have been closed after the military intelligence agency summoned currency dealers to address the rising dollar rate in the open market. The move was followed by enforcement actions led by the Federal Investigation Agency (FIA), tasked with combating financial crimes and smuggling. The rupee showed notable strength against the US dollar in recent trading sessions, gaining Rs2.10 over the past seven days, according to data from the State Bank and AKD Research. Gold dips Rs2,000 Gold prices in Pakistan declined, bucking the international trend, where the yellow metal saw a 1% rise as investors sought safe-haven assets amid growing tariff uncertainty ahead of US President Donald Trump's August 1 deadline to conclude trade negotiations. In the local market, the price of gold per tola dropped by Rs2,000 to settle at Rs353,000, according to the All Pakistan Sarafa Gems and Jewellers Association. Similarly, the rate of 10-gram gold fell by Rs1,714, closing at Rs302,641. This came after a marginal increase on Wednesday, when gold rose by Rs300 per tola to reach Rs355,000. Commenting on market movement, Interactive Commodities Director Adnan Agar noted that international gold prices on Thursday reached a high of $3,314 and low of $3,282, with the market later hovering around $3,294. "Despite recent gains supported by favourable US economic data, gold remains on the lower side," Agar said. "If the upcoming US employment data fails to support gold, we could see a dip towards $3,250 to $3,270. However, a rebound from that range could define the next trend." Analysts suggest that geopolitical and economic uncertainty continues to fuel volatility in global bullion markets, with local pricing reflecting a mix of international trends and rupee-dollar parity. Spot gold, internationally, was up 1% at $3,308.07 per ounce as of 1255 GMT, according to Reuters. US gold futures gained 0.3% to $3,306.10. "We've seen an uptick in trade uncertainty as we approach this August 1st deadline for tariffs... just a little bit of revival of the safe-haven bid," said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals.
Business Recorder
20-06-2025
- Business
- Business Recorder
Another downbeat trading day
KARACHI: The Pakistan Stock Exchange (PSX) experienced another downbeat trading day on Thursday, with most key indices registering declines despite some individual company gains. The benchmark KSE100 index dropped by 463.34 points or 0.38 percent to end the day at 120,002.59, down from its previous closing of 120,465.93. Throughout the day, the KSE 100 reached a high of 121,745.30 and a low of 119,770.03. On Thursday, the BRIndex100 closed at 12,923.04, marking a decrease of 54.42 points or 0.42 percent. The total trading volume for the BRIndex100 was 404.54 million. Meanwhile, the BRIndex30 ended the day at 36,973.62, reflecting a loss of 282.25 points or 0.76 percent, with a total volume of 269.32 million. Ismail Iqbal Securities in its report cited that local bourse cited another volatile session with persistent geopolitical tensions and fluctuating international oil prices, weighed on investor sentiments and kept the broader market under pressure. Total turnover in the regular market was recorded at 604.54 million shares, a decrease from the previous day's 707.30 million shares. The traded value in the regular market also saw a dip, from Rs 21.27 billion to Rs 20.44 billion. Moreover, the regular market's total market capitalization closed at over Rs 14.52 trillion, a decrease of Rs 87 billion from the previous day's Rs 14.61 trillion. In the ready market, 155 companies saw their share prices increase, while 269 declined, and 35 remained unchanged out of 459 companies traded. WorldCall Telecom again led the ready market in turnover with 64.60 million shares traded, closing at Rs 1.49. Sui Southern Gas followed with 35.63 million shares, closing at Rs 43.28. While, Prud Mod.1st remained the third in row with 30.29 million shares and its closing rate was Rs 4.31. In the ready market, Unilever Pakistan Foods Limited saw the most significant increase, rising by Rs 140.64 to close at Rs 23,129.64. Macter International Limited also saw a notable increase of Rs 51.39, closing at Rs 565.29. Conversely, PIA Holding Company LimitedB experienced the largest decrease, falling by Rs 1,377.01 to close at Rs 12,393.14. Hoechst Pakistan Limited also saw a substantial decline of Rs 99.24, closing at Rs 3,150.76. Sectoral indices at the close of trading showed mixed performance. The BR Automobile Assembler Index concluded at 20,279.67 points, experiencing a 0.92 percent or 188.49 points decline with a total turnover of 2.36 million. The BR Cement Index closed at 10,130.46 points, down 1.09 percent or 111.26 points, and recorded a total turnover of 29.30 million. In contrast, the BR Commercial Banks Index ended positively at 36,654.95 points, gaining 142.13 points or 0.39 percent, with a total turnover of 30.95 million. Meanwhile, the BR Power Generation and Distribution Index finished at 20,504.67 points, decreasing by 341.97 points or 1.64 percent on a total turnover of 25.59 million. The BR Oil and Gas Index closed at 11,514.03, down 0.32 percent or 36.89 points, with 53.90 million in total turnover. Finally, the BR Technology & Communication Index with 92.49 million turnover ended at 2,849.61 points, or 0.51 percent decrease. Topline Securities, in its commentary said that the local bourse kicked off the trading session on a strong footing on Thursday, buoyed by news that the federal cabinet has green lit a financial restructuring plan aimed at slashing Rs1.275 trillion in circular debt within the power sector over the next six years. Riding on this optimism, the benchmark index surged to an intraday high of 1,279 points. However, the bullish momentum was short-lived, as profit-taking set in later in the session, in line with global market trends. Moreover, the rising geopolitical tensions particularly the intensifying standoff between Iran and Israel dampened investor sentiment and led to a broad-based pullback, overshadowing the earlier euphoria and highlighting the fragility of market confidence in a volatile global environment. Copyright Business Recorder, 2025
Express Tribune
16-06-2025
- Business
- Express Tribune
Rupee loses 21 paisa on imports, global woes
The Pakistani rupee on Monday lost 21 paisa, or 0.07%, reaching its lowest level in 18 months against the US dollar amid rising import demand and evolving geopolitical factors. By the end of trading, the rupee stood at 283.17/$, down 21 paisa compared to the previous day. This marks the first time the currency has touched the 283 level since December 2023. The rupee remains under pressure due to increased import payments and ongoing debt repayments. Over the past week, the currency lost 0.28%, or 79 paisa, settling at 282.96 against the dollar, compared to the prior week's close at 282.17, as per data from the State Bank of Pakistan (SBP). The rupee has depreciated by 1.63% so far in the current calendar year and by 1.71% in the current fiscal year, according to Ismail Iqbal Securities. Exchange Companies Association of Pakistan General Secretary Zafar Paracha said the rupee has remained relatively stable compared to past crises, despite recent geopolitical tensions. He noted that unlike previous situations when the dollar surged sharply, the market has been managed better this time around. However, ongoing tensions and uncertainty have led to a slight depreciation of the rupee and rise in gold prices. Paracha also highlighted reduced remittances and increased capital outflows during recent India-Pakistan tensions, with some investors turning to alternatives like cryptocurrencies. Gold prices in Pakistan fell on Monday, mirroring the decline in the international market where bullion slipped over 1% as investors booked profits following an eight-week high. Market participants also remained cautious due to escalating Israel-Iran tensions and the upcoming US Federal Reserve policy meeting. In the domestic market, the price of gold per tola dipped Rs700 to settle at Rs362,300. Likewise, the price of 10 grams of gold decreased Rs600 to Rs310,613, according to the All Pakistan Sarafa Gems and Jewellers Association.
Express Tribune
31-05-2025
- Business
- Express Tribune
SBP injects Rs1.15tr to stabilise markets
Listen to article The State Bank of Pakistan (SBP) conducted a major liquidity injection on Friday, deploying a total of Rs1.148 trillion into the banking system through a mix of conventional and Shariah-compliant open market operations (OMOs). Under the conventional reverse repo facility, SBP injected Rs970 billion, including Rs250 billion for a 6-day tenor at 11.10% and Rs720 billion (partially accepted) for a 14-day tenor at 11.08%. Simultaneously, the Shariah-compliant Mudarabah OMO contributed Rs178 billion, split almost evenly between 6-day and 14-day tenors, both priced at 11.10%. This Rs1.15 trillion operation is among the largest single-day liquidity injections this year, signalling the SBP's proactive approach to maintaining stability in the interbank market amid tight liquidity conditions. Meanwhile, the Pakistani rupee posted a marginal gain against the US dollar in the interbank market, appreciating by 0.02% on Friday. By the end of the trading session, the local currency closed at 282.02, up by five paisas from Thursday's closing rate of 282.07. According to Ismail Iqbal Securities, the rupee has depreciated by 1.23% on a calendar year-to-date (CYTD) basis and by 1.30% on a fiscal year-to-date (FYTD) basis. On the commodities front, gold prices in Pakistan declined on Friday, reflecting losses in the international market. The fall came as the US dollar gained strength and investors responded to recent tariff announcements. However, a softer US inflation report sustained hopes of a possible interest rate cut. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold dropped by Rs700 per tola, settling at Rs348,600, while the rate for 10 grams decreased by Rs599 to Rs298,868. Adnan Agar, Director at Interactive Commodities, said the market remains range-bound. "Gold hit a high of $3,322 and is trading around $3,290, with strong support at $3,260," he noted, adding that, "Unless the price breaks above $3,340$3,350, downward pressure is likely to continue."
