PSX closes above 172,000 after volatile week amid budget wait

KARACHI: The Pakistan Stock Exchange ended a choppy trading week in positive territory, with the benchmark KSE-100 index rising 1.13% week-on-week to close at 172,400 points after briefly falling below the 170,000 mark during the week.

According to Express Tribune, the market posted a sharp rebound on Friday, gaining 1.6% in a single session as investor sentiment improved following reports that planned US strikes on Iran had been called off. The development eased concerns over regional tensions and helped lift risk appetite.

Weekly market movement

The KSE-100 started the week on a weak note, closing Monday at 168,954, down 1,525 points or 0.89% day-on-day. It was the first time since May 22, 2026, that the index had slipped below the 170,000 psychological threshold. The market recovered on Tuesday, when the benchmark settled at 170,331, up 1,377 points or 0.81%, reclaiming the level it had lost a day earlier.

Trading remained uneven for the rest of the week. On Wednesday, the index finished at 169,427, lower by 903 points or 0.53%, slipping back under 170,000. On Thursday, the market moved in a narrow range and ended at 169,704, up 276 points or 0.16%, before surging on Friday to settle at 172,400.

Brokerage reviews and key triggers

In its weekly report, Arif Habib Limited said the benchmark added 1,921 points over the week as trading activity stayed cautious ahead of the federal budget announcement, while US-Iran nuclear talks remained inconclusive.

The brokerage highlighted several economic indicators during the week. Auto sales covering cars, LCVs, vans, jeeps and EVs rose 19% year-on-year to 17.6k units in May 2026, while cumulative sales in 11MFY26 increased 45% to 183.6k units. On a month-on-month basis, however, volumes fell 20% amid subdued economic activity during Eid.

Remittances reached a record monthly high of $4.3 billion in May 2026, up 15% year-on-year and 20% month-on-month. For 11MFY26, cumulative remittances increased 9% to $38.1 billion.

AHL also reported that central government debt rose 1.7% month-on-month to Rs81.9 trillion as of April 2026, compared with Rs74.9 trillion in April 2025, reflecting a 9.3% year-on-year increase.

Auctions, fuel prices and production data

In the T-bill auction held on June 10, the government raised Rs1,962.3 billion against a target of Rs2,000 billion. Cut-off yields for one-month and six-month papers declined by 4.1 basis points and 1.0 basis points, respectively. The three-month yield edged up by 0.8 basis point, while the 12-month yield increased by 40 basis points.

The price of motor spirit was reduced by Rs4.0 per litre to Rs377.78 per litre, as the ex-refinery price fell by Rs28.58 per litre and the petroleum levy was raised by Rs24.74 per litre. High-speed diesel remained unchanged at Rs380.78 per litre, with the ex-refinery price increasing by Rs24.41 per litre while the petroleum levy was cut by Rs24.34 per litre.

Gas production fell 1.6% week-on-week to 3,021 mmcfd in the first week of June 2026, which AHL linked to lower output from the Qadirpur, Kandhkot, Sui and Shewa fields, likely due to disruption caused by the SNGPL pipeline rupture. Oil production also declined 1% week-on-week to 68,821 barrels per day because of lower output from Makori East, Maramzai, KPD and Sharf fields.

Gross inflows into Roshan Digital Accounts stood at $13,059 million by May 2026, of which $2,070 million had been repatriated and $8,283 million used locally, leaving a net liability of $2,706 million, according to AHL.

Flows and trading activity

Topline Securities, in its weekly review, said the KSE-100 gained 1.1% over the week, mainly supported by easing US-Iran tensions and lower oil prices, which helped Pakistani equities recover. It also noted that Pakistan’s remittances for May came in at $4.3 billion and that Pakistan Automotive Manufacturers Association data showed car sales at 17,660 units, up 19% year-on-year but down 20% month-on-month.

According to Topline, foreign corporates were net sellers during the week, offloading equities worth $19.42 million by Friday’s close, while individuals were the main buyers with net purchases of $19.4 million. Average daily traded volume stood at 776 million shares, while average daily traded value was Rs29 billion.