KSE‑100 Rallies to 180,301.70 in June 2026

July 01, 2026 (MLN): The KSE‑100 Index recorded a strong rally in June 2026, rising 6,338.88 points—an increase of 3.64%—and closing the month at 180,301.70 points. This represents a notable rebound from the May 2026 close of 173,962.82 points.

In comparison to April 2026, when the index climbed 9.58% (14,251 points), June’s gains were somewhat more modest in percentage terms but remain impressive against a higher base following two consecutive months of robust performance.

Year‑on‑year, the index has risen 43.52% from the June 2025 close of 125,627.31 points, adding 54,674.39 points over the twelve‑month period, reflecting the sustained re‑rating of the PSX over the past year.

The KSE‑100 Index’s market capitalisation increased to Rs5.157 trillion in June 2026, a month‑on‑month rise of Rs180.33 billion (3.62%) from Rs4.976 trillion in May. Year‑on‑year, market capitalisation grew by Rs1.400 trillion (37.27%) relative to Rs3.757 trillion in June 2025.

In US dollar terms, the KSE‑100 market capitalisation stood at $18.539 billion in June 2026, up $670.19 million (3.75%) from $17.869 billion in May 2026. Year‑on‑year, dollar‑denominated market capitalisation rose by $5.30 billion (40.04%) from $13.239 billion in June 2025.

On a returns basis, the KSE‑100 delivered a marginally higher return in USD terms than in PKR terms during June: the index’s PKR‑based return stood at 3.64%, while its USD‑based return was slightly higher at 3.77%.

The gap reflects a modest 0.12% appreciation of the rupee against the dollar during the month (from Rs278.50/USD to Rs278.16/USD), which added to, rather than eroded, dollar returns.

This pattern persisted over the preceding two months. April’s 9.58% rupee‑based index return translated into a 9.73% USD return, while May’s 6.73% gain became 6.83% in dollar terms.

In each case, currency stability and a slight rupee appreciation meant dollar investors captured marginally higher returns than their rupee counterparts, the reverse of what occurs during periods of rupee depreciation, when dollar returns are typically diluted.

This currency stability meant dollar‑denominated market‑cap gains tracked the index’s rupee‑based performance closely, without the erosion in USD terms that a depreciating rupee would otherwise impose.

Sector-wise

June’s rally was driven by broad sector participation, with 32 of the 34 KSE‑100 sectors posting positive gains. Commercial banks led the charge, contributing 1,451.16 points, followed by cement (+1,238.61 points), investment banks / investment companies / securities companies (+638.27 points), power generation & distribution (+458.81 points), and fertilizer (+398.96 points).

Textile composite (+379.41 points) and oil & gas exploration companies (+369.94 points) also featured prominently among top contributors, while pharmaceuticals (+234.66 points) and leather & tanneries (+208.32 points) rounded out the double‑digit gainers.

On the downside, technology & communication (-106.64 points) and refinery (-65.04 points) were the only sectors that dragged the index. Textile spinning (-1.37 points) and leasing companies (-0.01 points) posted only marginal declines.

Scrip-wise

At the individual level, United Bank Limited (UBL) was the largest contributor, adding 1,193.36 points on its own, followed by Hub Power Company (HUBC) with 414.66 points, Engro Holdings (ENGROH) with 380.02 points, Meezan Bank (MEBL) with 363.36 points, and Fauji Fertilizer Company (FFC) with 276.77 points. Fatima Fertilizer (FATIMA), Pakistan Stock Exchange (PSX), Maple Leaf Cement (MLCF), Ibrahim Fibres (ILP), and Lucky Cement (LUCK) completed the top‑ten list of gainers.

On the flip side, Bank Al Habib (BAHL) was the biggest drag, shedding 197.27 points, followed by Engro Fertilizers (EFERT) at -193.25 points, Bank Alfalah (BAFL) at -136.97 points, Sazgar Engineering (SAZEW) at -113.20 points, and MCB Bank (MCB) at -112.64 points. Pakistan State Oil (PSO, -107.67 points), Systems Limited (SYS, -86.23 points), TRG Pakistan (TRG, -68.17 points), and Attock Refinery (ATRL, -55.92 points) also lagged despite the market’s strength.

Foreign Investor Portfolio Investment (FIPI)

Foreign investors turned net sellers of Pakistani equities in June 2026, offloading a net Rs50.65 billion ($182.18 million) of shares. Foreign corporates were the primary sellers, posting net outflows of Rs56.80 billion ($204.32 million), the largest single driver of the month’s foreign selling.

Overseas Pakistanis were net buyers, acquiring Rs6.14 billion ($22.10 million), partially offsetting the corporate outflow, while foreign individuals recorded a negligible net inflow of Rs9.15 million.

Including a small net outflow of Rs35.20 million from the debt segment (entirely attributable to overseas Pakistanis), the FIPI grand total for June 2026 stood at a net sell of Rs50.68 billion ($182.31 million).

Local Investor Portfolio Investment (LIPI)

On the domestic side, companies were the leading net buyers in equities, acquiring Rs63.55 billion ($228.61 million) on a net basis, followed by mutual funds with net purchases of Rs13.37 billion ($48.08 million).

These inflows more than offset net selling by insurance companies (Rs15.67 billion), individuals (Rs7.20 billion), other organizations (Rs4.14 billion), and banks/DFIs (Rs1.51 billion), while broker proprietary trading and NBFCs posted marginal net buying of Rs2.22 billion and Rs27.91 million, respectively.

On a net basis, local investors absorbed the entire foreign equity outflow, with LIPI’s equity segment recording net buying of Rs50.65 billion ($182.18 million) for the month, mirroring the FIPI equity outflow.

Including the debt segment, where banks/DFIs were the largest net buyers at Rs10.81 billion, partially offset by mutual funds’ net selling of Rs16.22 billion, the LIPI grand total came in at a net buy of Rs50.68 billion ($182.31 million).

The near‑perfect offset between foreign selling and local buying underscores a familiar pattern for the PSX in recent months: domestic institutional flows, led by corporates and mutual funds, continue to provide a durable floor for the market even as foreign portfolio investors remain net sellers.

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