PakistanStock Exchange Slips 3,484 Points as Investors Await Budget and Geopolitical Updates
<p data-amp-original-style="text-align: justify;" class="amp-wp-7d27179">Report by Moaaz Manzoor</p>
<p data-amp-original-style="text-align: justify;" class="amp-wp-7d27179">The Pakistan Stock Exchange (PSX) declined in the first week of June, with the KSE-100 Index dropping 3,484 points week-on-week to close at 170,479, a 2% decrease, as uncertainty over US‑Iran negotiations and pre‑budget caution dampened investor sentiment.</p>
<p data-amp-original-style="text-align: justify;" class="amp-wp-7d27179">Investors stayed cautious, monitoring diplomatic developments between Washington and Tehran, fluctuations in global oil prices, and expectations for the FY27 federal budget, slated for release on June 10.</p>
<p data-amp-original-style="text-align: justify;" class="amp-wp-7d27179">Arif Habib Limited (AHL) noted that banks, investment banks, cement, power, and fertilizer sectors were the primary contributors to the benchmark index’s decline during the week.</p>
<p data-amp-original-style="text-align: justify;" class="amp-wp-7d27179">Technology stocks offered the strongest upside, adding 166 points to the benchmark index. Fast‑moving consumer goods contributed 30 points, transport added 27 points, synthetic and rayon rose 7 points, and pharmaceuticals rose 6 points.</p>
<p data-amp-original-style="text-align: justify;" class="amp-wp-7d27179">Engro Holdings led the declines, subtracting 440 points from the benchmark. Bank AL Habib followed with a 244‑point drag, Lucky Cement fell 222 points, Hub Power Company declined 165 points, and Engro Fertilisers dropped 149 points.</p>
<p data-amp-original-style="text-align: justify;" class="amp-wp-7d27179">Pakistan Telecommunication Company Limited was the top gainer, adding 116 points. Pakistan Oilfields added 65 points, TRG Pakistan contributed 57 points, Ghandhara Industries 49 points, and Colgate‑Palmolive 38 points.</p>
<p data-amp-original-style="text-align: justify;" class="amp-wp-7d27179">Trading volume rose, with average daily volumes climbing 17.5% week-on-week to 623 million shares, while the average traded value slipped 24% to $98 million, according to AHL.</p>
<p data-amp-original-style="text-align: justify;" class="amp-wp-7d27179">AHL expects the KSE-100 Index to remain range‑bound in the coming week as investors await the federal budget and clearer policy signals. It noted that any positive development in the US‑Iran negotiations could act as a catalyst, offering upside potential to the market.</p>
<p data-amp-original-style="text-align: justify;" class="amp-wp-7d27179">AHL reports that the KSE-100 Index trades at 7.9 times earnings and a dividend yield of roughly 6.4%. Its top picks include Oil and Gas Development Company, Pakistan Petroleum Limited, Fauji Fertilizer Company, Lucky Cement, National Bank of Pakistan, Hub Power Company, Pakistan State Oil, and Attock Refinery Limited.</p>
<p data-amp-original-style="text-align: justify;" class="amp-wp-7d27179">AKD Securities indicated that a constructive outcome of US‑Iran negotiations and the trajectory of global oil prices will continue to serve as key near‑term catalysts for the market.</p>
<p data-amp-original-style="text-align: justify;" class="amp-wp-7d27179">The FY27 federal budget, due on June 10, remains a major focus for investors, according to AKD, which notes that the market trades at attractive valuations with a forward price‑to-earnings multiple of 7.0 times.</p>
<p data-amp-original-style="text-align: justify;" class="amp-wp-7d27179">In the near term, the market’s direction will hinge on clarity in budgetary measures, global oil price movements, and tangible progress in US‑Iran diplomacy. Until then, investors are expected to stay selective, focusing on fundamentally strong stocks.</p>
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<p><a href="https://www.inp.net.pk/article-detail/inp-wealthpk/psx-sheds-3484-points-amid-budget-jitters-us-iran-uncertainty">Source link </a></p>
