Stocks regain 170k level amid budget cues

Benchmark KSE-100 index rises nearly 2,000 points in volatile week

KARACHI:

Despite witnessing sharp swings throughout the week and briefly slipping below the key 170,000-point level, the Pakistan Stock Exchange (PSX) gained 1.13% week-on-week to close at 172,400 points. It staged a strong recovery on Friday, adding 1.6% in a single session after reports that planned US strikes on Iran had been called off, boosting risk appetite and improving investor sentiment.

On a day-on-day basis, the PSX endured another negative Monday, with the KSE-100 index closing at 168,954, down 1,525 points (-0.89% day-on-day), slipping below the key 170,000 psychological level for the first time since May 22, 2026.

However, the bourse staged a strong recovery the next day, Tuesday, where the index closed at 170,331, up 1,377 points (+0.81%), and reclaimed the 170,000 level.

The market experienced a mixed session on Wednesday, ending the day's trading at 169,427, down 903 points (-0.53%), and slipping just below 170k. PSX witnessed a consolidation session on Thursday, with the KSE-100 closing at 169,704, up 276 points (+0.16%), as the benchmark continued to hover around the 170k level.

The stock exchange surged 1.6% to settle at 172,400 points on Friday, driven by improved investor sentiment after reports that planned US strikes on Iran were called off, easing regional tensions and boosting hopes for diplomatic progress.

In its report, Arif Habib Limited (AHL) noted that the KSE-100 settled at 172,400 points, up 1.13% week-on-week (+1,921 points), as market activity remained measured ahead of the federal budget announcement, with US-Iran nuclear talks remaining inconclusive.

Auto sales (cars, LCVs, vans, jeeps and EVs) rose 19% year-on-year to 17.6k units in May'26, with cumulative 11MFY26 sales up 45% YoY to 183.6k units, though volumes declined 20% month-on-month due to subdued economic activity during Eid.

Remittances hit a record monthly high of $4.3 billion in May'26, up 15% YoY and 20% MoM. Cumulatively, 11MFY26 remittances rose 9% YoY to $38.1 billion. Central government debt increased 1.7% MoM to Rs81.9 trillion (+9.3% YoY) as of Apr'26, compared to Rs74.9 trillion in Apr'25.

In the T-bill auction on June 10, the government raised Rs1,962.3 billion against the target of Rs2,000 billion. Cut-off yields declined for one-month and six-month tenors by 4.1 basis points and 1.0 basis points, respectively, while the three-month yield edged up 0.8 basis point and the 12-month yield rose 40 basis points.

The price of motor spirit (MS) decreased by Rs4.0/litre to Rs377.78/litre, as the ex-refinery price fell Rs28.58/litre and the petroleum levy was raised by Rs24.74/litre. High-speed diesel (HSD) remained unchanged at Rs380.78/litre, with the ex-refinery price rising Rs24.41/litre while the petroleum levy was reduced by Rs24.34/litre.

Gas production declined 1.6% WoW to 3,021 mmcfd during the first week of Jun'26, driven by lower output from Qadirpur, Kandhkot, Sui, and Shewa fields, likely attributable to disruptions from the SNGPL pipeline rupture. Oil production declined 1% WoW to 68,821 barrels per day, due to lower output from Makori East, Maramzai, KPD, and Sharf fields.

Gross inflows into Pakistan's Roshan Digital Account reached $13,059 million as of May'26, of which $2,070 million has been repatriated and $8,283 million utilised locally, leaving a net liability of $2,706 million, said AHL in the report.

Topline Securities, in its weekly review, stated that the KSE-100 rose 1.1% on a WoW basis, primarily driven by easing US-Iran tensions and lower oil prices, which boosted risk appetite and supported a rebound in Pakistani equities.

Major developments during the week were Pakistan's remittances for May 2026 coming in at $4.3 billion, reflecting an increase of 15% YoY and 20% MoM and car sales for May 2026, as reported by PAMA, reaching 17,660 units, higher by 19% YoY while lower by 20% MoM.

Foreign corporates were sellers in the stock market as they sold equities worth a net $19.42 million, as of Friday's close, whereas individuals were major buyers as they purchased equities worth a net $19.4 million. Average daily traded volume and value during the week stood at 776 million shares and Rs29 billion, respectively, added Topline.