Pakistani Stock Market Rebounds to 172,400 Points on Easing Iran Tensions

Despite volatility earlier in the week and a temporary dip below the 170,000‑point threshold, the Pakistan Stock Exchange (PSX) rose 1.13% week‑on‑week to close at 172,400 points. On Friday it posted a strong gain of 1.6% after reports that planned US strikes on Iran were cancelled, which lifted risk appetite and improved investor sentiment.

On a day‑on‑day basis the index fell 0.89% to 168,954 points on Monday, slipping below the 170,000 psychological level for the first time since May 22, 2026.

However, the market rebounded the following day, Tuesday, closing at 170,331 points, up 0.81% and reclaiming the 170,000 level.

The market was mixed on Wednesday, ending at 169,427 points (‑0.53%), before stabilising on Thursday with a 0.16% rise to 169,704 points, keeping the index near the 170,000 mark.

On Friday the exchange surged 1.6% to 172,400 points, driven by improved investor sentiment after the cancellation of anticipated US strikes on Iran, easing regional tensions and spurring optimism about diplomatic progress.

According to a report by Arif Habib Limited, the KSE‑100 index closed at 172,400 points, up 1.13% week‑on‑week (+1,921 points), with trading activity remaining moderate ahead of the federal budget announcement and inconclusive US‑Iran nuclear talks.

Auto sales (including cars, light commercial vehicles, vans, jeeps and EVs) increased 19% year‑on‑year to 17,600 units in May 2026; cumulative sales for the first 11 months of FY26 rose 45% YoY to 183,600 units, although month‑on‑month volumes fell 20% amid subdued economic activity during Eid.

Remittances reached a record $4.3 billion in May 2026, representing a 15% YoY and 20% MoM increase; cumulative remittances for the first 11 months of FY26 grew 9% YoY to $38.1 billion. Central government debt rose 1.7% month‑on‑month to Rs 81.9 trillion (+9.3% YoY) as of April 2026, compared with Rs 74.9 trillion in April 2025.

In the T‑bill auction on June 10, the government raised Rs 1,962.3 billion against a target of Rs 2,000 billion. Cut‑off yields fell by 4.1 basis points for one‑month tenors and 1.0 basis point for six‑month tenors, while the three‑month yield edged up 0.8 basis points and the 12‑month yield rose 40 basis points.

The price of motor spirit (MS) fell by Rs 4.0 per litre to Rs 377.78, as the ex‑refinery price dropped Rs 28.58 and the petroleum levy was raised by Rs 24.74. High‑speed diesel (HSD) remained unchanged at Rs 380.78 per litre, with the ex‑refinery price increasing Rs 24.41 while the petroleum levy was reduced by Rs 24.34.

Gas production declined 1.6% week‑on‑week to 3,021 mmcfd during the first week of June 2026, mainly due to lower output from Qadirpur, Kandhkot, Sui and Shewa fields, likely reflecting disruptions from an SNGPL pipeline rupture. Oil production fell 1% week‑on‑week to 68,821 barrels per day, impacted by reduced output from Makori East, Maramzai, KPD and Sharf fields.

Gross inflows into Pakistan’s Roshan Digital Account reached $13.059 billion as of May 2026; $2.07 billion has been repatriated and $8.283 billion used locally, leaving a net liability of $2.706 billion, according to AHL.

Topline Securities noted that the KSE‑100 rose 1.1% week‑on‑week, driven largely by easing US‑Iran tensions and lower oil prices, which boosted risk appetite and supported a rebound in Pakistani equities.

Key weekly developments included record remittances of $4.3 billion in May 2026 (+15% YoY, +20% MoM) and car sales of 17,660 units (+19% YoY, –20% MoM), as reported by PAMA.

Foreign corporates sold a net $19.42 million of equities by Friday’s close, while individual investors bought a net $19.4 million. Average daily traded volume was 776 million shares with a value of Rs 29 billion for the week, Topline added.

Source link