PSX snaps winning streak, loses 3,130 points

The KSE-100 index of the Pakistan Stock Exchange (PSX) snapped its winning streak during the outgoing week, closing at 182,242 after shedding 3,130 points, or 1.69% week-on-week, as US-Iran tensions and the announcement of ending the ceasefire triggered a sharp sell-off.

On a day-on-day basis, the PSX commenced the week with a positive session on Monday, where the KSE-100 gained 2,083 points (+1.12%) to close at 187,465. However, the market witnessed a consolidating session on Tuesday as it dipped 1,199 points (-0.64%) to 186,256.

The bourse again saw bearish trading on Wednesday, plunging 4,626 points (-2.48%) to close at 181,629. There was a mixed session on Thursday, with the index declining 370 points (-0.20%) to close at 181,260. PSX closed the trading week on a positive note on Friday, gaining 982 points (+0.54%) to settle at 182,242.

Arif Habib Limited (AHL) observed in its weekly commentary that the KSE-100 index closed at 182,242, down 1.69% WoW (-3,130 points). The start of the week reflected the continuation of the strong momentum seen in the previous week as the index gained 2,082 points on Monday. However, escalating tensions between the US and Iran and the announcement by President Trump of an end to the ceasefire triggered a sharp sell-off.

Cement dispatches showed an increase of 18% year-on-year to 4.33 million tons in Jun'26, driven by a low base effect. For FY26, total dispatches grew 8% to reach 50.58 million tons from 47 million tons in the previous year. The central government debt data revealed a growth of 7.8% YoY to Rs82 trillion as of May'26 compared with Rs76 trillion in May'25, AHL mentioned.

Oil and gas production data for the week showed gas production improved by 4.2% WoW to 3,097 million cubic feet per day (mmcfd), while oil production rose 6% WoW to 70,157 barrels per day (bpd). In the T-bill auction, the government raised a total of Rs2,068 billion against the target of Rs2,400 billion. Cut-off yields dropped 31 to 40.3 basis points across all tenors.

Pakistan recorded its highest-ever yearly remittances in FY26, which hit $41.6 billion (+9% YoY). On a monthly basis, remittances for Jun'26 came in at $3.5 billion, edging higher 2% YoY, while declining 18% month-on-month. Also, net metering units continued to surge in May'26 as the total share rose 105 basis points. Overall power generation decreased 0.9% YoY in May'26 while Nepra expected power demand to grow 1% in CY26.

Pakistan's gross Roshan Digital Account inflows reached $13.365 billion as of Jun'26, out of which $2.093 billion was repatriated and $8.435 billion was utilised locally. Meanwhile, total liquid foreign exchange reserves were recorded at $24 billion, up $1.944 billion. Out of these, the State Bank's reserves amounted to $18.5 billion, up $1.944 billion, providing an import cover for 2.9 months, AHL said.

Syed Danyal Hussain of JS Global noted that the KSE-100 index snapped its winning streak during the outgoing week, declining 1.7% WoW (-3,130 points) to close at 182,242, as renewed geopolitical tensions following fresh US-Iran strikes weighed on investor sentiment. In the wake of the attacks, Brent crude prices rose 4.7% WoW to $75.5 per barrel. On the macroeconomic front, Pakistan's remittances reached a record $41.6 billion in FY26, up 9%. However, effective Jul'26, the SBP discontinued incentive payments to banks on home remittances.

Meanwhile, he said, the Asian Development Bank (ADB) lowered its FY27 GDP growth forecast for Pakistan to 3.7% from 4.5% and revised the inflation outlook upwards, citing higher food and energy prices amid regional conflicts. On the fiscal front, the total government debt rose to Rs82 trillion as of May'26.

Separately, the government was planning to issue its first dollar-settled, rupee-linked bonds alongside fresh Eurobond and Sukuk offerings. Pakistan and the US also continued negotiations in Washington on a proposed reciprocal trade agreement, with tariff reductions expected to dominate discussions. In the latest T-bill auction, the government raised Rs1.92 trillion, while cut-off yields declined across all tenors, Hussain said.