The KSE-100 index of the Pakistan Stock Exchange (PSX) extended its winning streak, closing at 185,372 points with a weekly gain of 3.23%, or 5,801 points, as easing oil prices on the back of de-escalating US-Iran geopolitical tensions bolstered investor confidence. Brent crude softened to around $71.8 per barrel during the week.
Weekly Market Performance
On a day-on-day basis, the PSX commenced the week with a mixed session on Monday, where the KSE-100 declined 1,157 points (-0.64%) to close at 178,415. However, the market witnessed a strong session the next day, gaining 1,887 points (+1.06%) to close at 180,302. The benchmark index reclaimed the 180k level, ending the month with a solid growth of 3.63% (month-on-month). On Wednesday, the bulls extended their dominance on the local bourse as robust buying interest fuelled a broad-based rally throughout the session. The index surged to the intra-day high of 3,931 points before settling at 184,050, rising 3,748 points (+2.08%). The KSE-100 extended its positive momentum on Thursday, closing at 184,521, up 471 points (+0.26%) from the previous session. However, the PSX ended the week with a mixed session, when the index added 851 points (+0.46%) to settle at 185,372.
Key Drivers and Economic Indicators
Arif Habib Limited (AHL) commented that the KSE-100 index closed at 185,372 points, up 3.23% week-on-week (+5,801 points). The advance was primarily driven by decreasing oil prices due to de-escalation of geopolitical tensions, and the continued bullish market momentum increased investor confidence. The Consumer Price Index (CPI) for Jun'26 came in at 11.1% year-on-year compared to 11.7% in May. Pakistan recorded a trade deficit of $4.5 billion in Jun'26, which widened 75.4% MoM compared with $2.6 billion in May'26, driven by a significant increase in imports. Total liquid foreign currency reserves stood at $22,045 million as of June 24, 2026 (State Bank reserves at $16,527 million and commercial bank reserves at $5,517 million), up 2.6% WoW after a sharp 5.5% decline in the prior week.
Bond Auction and Energy Sector
In the Pakistan Investment Bond (PIB) auction, the government raised Rs438 billion against the target of Rs350 billion, with cut-off yields declining across all tenors by 47 to 70 basis points, mentioned AHL. Gas production improved 0.5% WoW to 2,971 mmcfd in the third week of Jun'26, mainly due to higher output from Mari, Uch and Qadirpur fields. However, Shewa production declined sharply to 21 mmcfd from 101 mmcfd, likely because of disruptions linked to the SNGPL pipeline rupture. Pakistan's petroleum sales remained under pressure in Jun'26, with volumes standing at 1.26 million tons, down 20% YoY. Provisional urea offtake rose 2% YoY to 592k tons in Jun'26, remaining subdued in May-June as dealers front-loaded inventory in March-April ahead of anticipated price hikes. Overall refinery sales declined 8.1% YoY in Jun'26, primarily due to a significant reduction in high-speed diesel and furnace oil offtake. Pakistani rupee appreciated slightly against the US dollar, strengthening 0.03% WoW to close at Rs278.12/$, said AHL.
Analyst Commentary
Syed Danyal Hussain of JS Global noted that the KSE-100 extended its winning streak during the week, advancing 3.2% WoW (+5,800 points), primarily supported by improving investor sentiment following progress on US-Iran negotiations. Meanwhile, Brent crude prices softened to $71.8 per barrel. On the macroeconomic front, the CPI inflation stood at 11.1% YoY, bringing average inflation for FY26 to 7.04%. Pakistan's external sector, however, remained under pressure, with the trade deficit widening 57% YoY to $4.5 billion in Jun'26. Consequently, the cumulative FY26 trade deficit reached $39.4 billion (+22%), marking the highest level in four years, driven by a 6% decline in exports alongside an 8% increase in imports. On the fiscal front, the Federal Board of Revenue achieved its revised FY26 tax collection target, receiving Rs13 trillion against the target of Rs12.98 trillion. Pakistan's central govt debt increased 5% YoY, representing the slowest pace of debt accumulation in the past 15 years. In other news, Barclays upgraded Pakistan's sovereign debt rating to 'Overweight', citing a more favourable oil price outlook, said Hussain.
