KARACHI: The Pakistan Stock Exchange (PSX) closed the outgoing week on a positive note, with the benchmark KSE-100 Index gaining 1.1 percent despite sharp volatility and briefly falling below the key 170,000-point level, as easing tensions between the United States and Iran and declining international oil prices improved investor sentiment and revived risk appetite.
The benchmark KSE-100 Index advanced 1,921 points, or 1.13 percent, on a week-on-week basis to settle at 172,399.90 points, compared with 170,478.94 points a week earlier. During the week, the market touched an intraday high of 173,093 points and a low of 168,433 points, reflecting considerable volatility before staging a strong recovery.
Market activity remained uneven throughout the week. The benchmark index declined by 0.89 percent on Monday to close at 168,953.71 points, recovered 0.81 percent on Tuesday to 170,330.56 points, slipped 0.53 percent on Wednesday to 169,427.44 points, edged up 0.16 percent on Thursday to 169,703.60 points, and then surged 1.59 percent on Friday to end the week at 172,399.90 points.
The strong weekly performance also added substantially to investor wealth, with the total market capitalization of the Pakistan Stock Exchange increasing to Rs19.12 trillion by the close of trading on Friday, compared with Rs18.93 trillion a week earlier. This represented an increase of approximately Rs191.76 billion, reflecting the broad-based recovery in equity prices amid improving investor sentiment.
The BRIndex100 opened the week at 18,850.25 points and closed at 19,068.90 points, registering a gain of 218.65 points during the period. Total turnover in the index stood at 2.78 billion shares, translating into an average daily turnover of approximately 555.94 million shares.
Similarly, the BRIndex30 advanced from 68,904.70 points at the start of the week to 69,194.02 points at the close, posting a gain of 289.32 points. Weekly turnover in the index reached 1.64 billion shares, averaging approximately 328.50 million shares per trading day.
According to market analysts, the week’s gains were primarily driven by improving prospects for a diplomatic resolution between Washington and Tehran, which eased concerns regarding potential disruptions to global oil supplies and helped lower crude oil prices. The improvement in the geopolitical outlook encouraged investors to return to equities after weeks of uncertainty linked to regional tensions.
The market also received support from strong remittance inflows. Data released during the week showed that workers’ remittances reached a record monthly high of $4.3 billion in May 2026, reflecting an increase of 15 percent year-on-year and 20 percent month-on-month. On a cumulative basis, remittances during 11MFY26 rose 9 percent to $38.1 billion, providing additional comfort regarding the country’s external account position.
Meanwhile, automobile sales remained robust. According to figures released by the Pakistan Automotive Manufacturers Association (PAMA), car sales reached 17,660 units in May 2026, registering a 19 percent year-on-year increase, although sales were down 20 percent month-on-month.
Average daily trading activity remained strong throughout the week, with average daily volume standing at 776 million shares, while average daily traded value reached approximately Rs29 billion, reflecting healthy investor participation.
Foreign investors remained net sellers during the week. According to Topline Securities, foreign corporates recorded net sales of $19.42 million, while local individual investors emerged as the major buyers, purchasing equities worth USD19.4 million, effectively absorbing foreign selling pressure.
On the macroeconomic front, the Sensitive Price Index (SPI) for the week ended June 11, 2026 increased 15.06 percent year-on-year and 0.16 percent week-on-week, indicating that inflationary pressures remained elevated despite recent moderation in energy prices.
The Roshan Digital Account (RDA) initiative continued to attract overseas investor interest. Total net investments made through RDA from November 2020 to May 2026 reached USD1.93 billion. This included USD586 million in conventional Naya Pakistan Certificates, USD1.21 billion in Islamic Naya Pakistan Certificates, and USD135 million in Roshan Equity Investments. Total balances in RDA accounts stood at USD700 million, while net repatriable liabilities amounted to USD2.71 billion.
Government debt statistics released during the week showed that central government debt increased 1.7 percent month-on-month to Rs81.9 trillion as of April 2026, compared with Rs74.9 trillion recorded in April 2025, reflecting an annual increase of 9.3 percent.
In the petroleum sector, the government reduced the price of motor spirit by Rs4.00 per litre to Rs377.78 per litre. The decline was driven by a decrease of Rs28.58 per litre in ex-refinery prices, partially offset by a Rs24.74 per litre increase in petroleum levy. The price of high-speed diesel remained unchanged at Rs380.78 per litre, as an increase in ex-refinery prices was offset by a reduction in petroleum levy.
The upstream energy sector, however, showed some weakness. According to the latest Pakistan Petroleum Information Service (PPIS) data, oil production declined 1 percent week-on-week to 69,700 barrels per day, mainly due to lower output from the Shewa, Makori East and KPD fields. Gas production also fell 2 percent to 3,021 million cubic feet per day, largely due to a 20 percent decline in flows from the Qadirpur field.
Analysts believe market direction in the coming weeks will largely depend on further developments on the geopolitical front and investors’ assessment of measures announced in the Federal Budget FY27.
Improved prospects for a lasting diplomatic solution between the United States and Iran are expected to remain a key driver of sentiment, while macroeconomic indicators and policy announcements will continue to shape investment decisions.
Copyright Business Recorder, 2026
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