By Moaaz Manzoor

The Pakistan Stock Exchange (PSX) ended the second week of June on a strong note, with the benchmark KSE-100 Index gaining 1,921 points, or 1.13%, week-on-week to close at 172,400 points. Easing geopolitical tensions and encouraging economic indicators helped restore investor confidence and supported a rebound in equities.

According to Topline Securities, the market's positive performance was driven primarily by lower international oil prices and improving prospects for a diplomatic resolution to tensions involving Iran, which boosted risk appetite and encouraged fresh buying activity.

Among the key developments during the week, workers' remittances surged to $4.3 billion in May 2026, up 15% year-on-year and 20% month-on-month. Meanwhile, data from the Pakistan Automotive Manufacturers Association showed car sales increasing 19% year-on-year to 17,660 units in May, although sales declined 20% compared to April.

Despite the weekly gain, trading remained volatile as investors balanced geopolitical developments, domestic economic indicators and expectations surrounding the FY27 federal budget.

The week began on a weak footing, with the KSE-100 Index falling 1,525 points on June 8 to close at 168,954 points, slipping below the 170,000 level for the first time since May 22. Renewed hostilities between Iran and Israel weighed heavily on investor sentiment.

The benchmark recovered on June 9, gaining 1,377 points to close at 170,331 points as buying interest returned across key sectors. Investors responded positively to signs of easing regional tensions and reports suggesting a possible delay in the federal budget announcement.

However, the recovery proved short-lived. On June 10, the index lost 903 points to settle at 169,427 points amid fresh uncertainty in international markets. Although remittance inflows remained strong, investors largely avoided taking aggressive positions.

The market traded within a narrow range on June 11, with the KSE-100 Index adding 276 points to close at 169,704 points. Investors assessed the findings of the Economic Survey 2025-26, which showed Pakistan's economy growing 3.7% during the fiscal year, while per capita income rose to $1,901.

A strong rally on June 12 lifted the benchmark index by 2,696 points to 172,400 points, its highest closing level of the week. Sentiment improved after reports indicated that the United States was allowing additional time for diplomatic efforts concerning Iran, easing fears of a broader regional conflict. Optimism ahead of the federal budget further strengthened buying momentum.

At the company level, United Bank Limited, Engro Holdings, Hub Power Company, Lucky Cement and Meezan Bank remained among the most influential stocks during the week, contributing significantly to movements in the benchmark index.

Market activity also remained healthy. According to Topline Securities, average daily traded volume stood at 776 million shares, while average daily traded value reached Rs29 billion.

On the flows side, foreign corporates remained net sellers, offloading equities worth $19.42 million. Individual investors emerged as the largest buyers, with net purchases totaling $19.4 million.

Commenting on market performance, Ali Najib, Deputy Head of Trading at Arif Habib Limited, said the KSE-100 Index gained 1,921 points during the week to close at 172,400 points. He noted that the benchmark touched an intraday high of 173,093 points and a low of 168,433 points, underscoring the volatility that prevailed before sentiment improved toward the end of the week.

Najib said improving prospects for a diplomatic resolution to regional tensions had helped restore investor confidence. He added that market direction in the coming sessions would depend largely on geopolitical developments and investors' assessment of FY27 budget measures.

Credit: INP-WealthPk