PSX benchmark index up 6.7%MoM

According to a report by Taurus Securities, at the end of May 2026, the benchmark index of Pakistan Stock Exchange (PSX) closed at 173,963, up 10,969 points or 6.7%MoM. Net FIPI outflow was recorded at US$17.08 million. Average daily traded volume was slightly more than 705 million shares, down 23%MoM. The average traded value also declined by 11%MoM to PKR36.8 billion. Nevertheless, overall activity remained dull in terms of volume and value.

Overall, mixed sentiments were witnessed at the bourse during the month. The earlier half was dominated by bearish sentiment, cautious activity and profit-taking. However, some recovery was seen in the latter half. Sentiments also got a boost from multiple IPOs in May’26 like Wahdat Poultry and Sitara Petroleum.

Key triggers for the market during the month under review included: 1) Pakistan stepped up mediator role as US-Iran draw closer to a deal; while global energy prices remain volatile as supplies remain affected, 2) IMF Executive Board approved third EFF review and disbursement of US$1.3 billion. The IMF adds 11 new structural conditions for future, 3) Pakistan issued Panda Bonds at a competitive 2.5% coupon, 4) Pakistan committed to 2% Primary Surplus for the next fiscal year, 5) LNG supplies remained disrupted due to the Middle-East conflict, 6) April 2026 balance of payments came under pressure on a sequential basis, as oil import bill spiked due to the US-Israel war on Iran and remittances also declined, 7) Headline inflation in April 2026 was reported at 10.9% and May 2026 NCPI is expected to rise to 12.4%, 8) the GoP increased petroleum levy to bridge revenue short-fall, 9) Pakistan auctioned offshore exploration blocks after 20 year gap, and 10) Internal security situation became fragile with fresh terrorist attacks in KP and Baluchistan.

Beijing’s Two Guests, Two Different Missions

China’s hosting of US President Donald Trump and Russian President Vladimir Putin in quick succession was more than a matter of diplomatic scheduling. Red carpets and ceremonial greetings often appear similar, but the political calculations behind state visits differ significantly. Beijing appeared to receive two major powers pursuing very different objectives.

Trump’s visit seemed driven largely by immediate economic and geopolitical concerns. Tariffs, trade access, supply chains and tensions surrounding the Middle East crisis appeared to dominate the agenda. Washington’s priorities also seemed linked to limiting disruptions in global energy markets and ensuring the reopening and security of the Strait of Hormuz. The United States understands that prolonged instability in this vital maritime route would have consequences not only for oil prices but also for global economic confidence.

Putin’s visit appeared to carry a different strategic character. Moscow’s engagement with Beijing looked less transactional and more structural. Energy cooperation, strategic coordination and strengthening a partnership that increasingly challenges Western influence seemed to occupy a central place. While Washington frequently engages China through competition mixed with cooperation, Moscow increasingly approaches China as a long-term geopolitical partner.

On the question of Middle East peace and the US-Israel confrontation with Iran, both leaders had reasons to seek Beijing’s attention but from opposite directions. Washington appears interested in preventing a wider regional escalation that could destabilize markets and alliances. Moscow, meanwhile, may view prolonged instability as another indicator of a changing global order where US influence faces growing challenges.

Even reception ceremonies can carry subtle diplomatic messages. Observers often read airport greetings as signals of political warmth and priority. Whether intentional or not, such gestures become subjects of interpretation.

The South China Sea dispute and tariffs also remain unresolved pressures between Washington and Beijing. China’s larger message appears increasingly clear: it no longer wishes merely to participate in global politics; it seeks to shape the environment in which global politics is conducted.

China lauds progress in Iran-Saudi ties

The Chinese Foreign Ministry has expressed strong support for the constructive interactions between Saudi Arabia and Iran, emphasizing their role in fostering enduring good neighborly relations.

During a press briefing, Foreign Ministry Spokesperson Lin Jian noted that Saudi-Iran relations have been on a positive trajectory and China appreciates this progress. 

Lin Jian stated that Saudi Arabia and Iran have been engaging in positive interactions at various levels, further solidifying their reconciliation and playing a crucial role in fostering regional peace and stability. 

China remains committed to supporting both nations as they advance together, enhancing mutual trust, and achieving enduring good-neighborly relations and friendship, the spokesman said. 

The remarks come after several high-ranking visits between Iran and Saudi Arabia took place in the past month. 

Iran and Saudi Arabia restored diplomatic ties in March of 2023 under a China-brokered deal. The two West Asian countries have agreed to move towards establishing a security cooperation pact.

 

Secret US Base in Israel

According to a report, two months before Hamas attacked Israel, the Pentagon awarded a multi million dollar contract to build US troop facilities for a secret base it maintains deep within Israel’s Negev desert, just 20 miles from Gaza. Code-named ‘Site 5’, the longstanding US base is a radar facility that monitors the skies for missile attacks on Israel. 

On October 07, however, when thousands of Hamas rockets were launched, Site 512 saw nothing — because it is focused on Iran, more than 700 miles away.

The US Army is quietly moving ahead with construction at Site 512, a classified base perched atop Mt. Har Qeren in the Negev, to include what government records describe as a ‘life support facility’: military speak for barracks-like structures for personnel.

Though President Joe Biden and the White House insist that there are no plans to send U.S. troops to Israel amid its war on Hamas, a secret US military presence in Israel already exists. And the government contracts and budget documents show it is evidently growing. 

The US$35.8 million US troop facility, not publicly announced or previously reported, was obliquely referenced in an August 02 contract announcement by the Pentagon. Though the Defense Department has taken pains to obscure the site’s true nature — describing it in other records merely as a “classified worldwide” project — budget documents reviewed by The Intercept reveal that it is part of Site 512.

“Sometimes something is treated as an official secret not in the hope that an adversary would never find out about it but rather because the U.S. government, for diplomatic or political reasons, does not want to officially acknowledge it,” Paul Pillar, a former chief analyst at the CIA’s counterterrorism center who said he had no specific knowledge of the base, told The Intercept.

“In this case, perhaps the base will be used to support operations elsewhere in the Middle East in which any acknowledgment that they were staged from Israel, or involved any cooperation with Israel, would be inconvenient and likely to elicit more negative reactions than the operations otherwise would elicit.”

Rare acknowledgment of the US military presence in Israel came in 2017, when the two countries inaugurated a military site that the US government-funded Voice of America deemed “the first American military base on Israeli soil.”

Israeli Air Force’s Brig. Gen. Tzvika Haimovitch called it “historic.” He said, “We established an American base in the State of Israel, in the Israel Defense Forces, for the first time.” 

A day later, the U.S. military denied that it was an American base, insisting that it was merely a living facility for US service members working at an Israeli base. 

The US military employs similar euphemistic language to characterize the new facility in Israel, which its procurement records describe as a life support area.

Such obfuscation is typical of US military sites the Pentagon wants to conceal. Site 512 has previously been referred to as a “cooperative security location”: a designation that is intended to confer a low-cost, light footprint presence but has been applied to bases that, as The Intercept has previously reported, can house as many as 1,000 troops.

Site 512, however, wasn’t established to contend with a threat to Israel from Palestinian militants but the danger posed by Iranian mid-range missiles.

The overwhelming focus on Iran continues to play out in the US government’s response to the Hamas attack. In an attempt to counter Iran — which aids both Hamas and Israel’s rival to the north, Hezbollah, a Lebanese political group with a robust military wing, both of which are considered terror groups by the US — the Pentagon has vastly expanded its presence in the Middle East.

Following the attack, the US doubled the number of fighter jets in the region and deployed two aircraft carriers off the coast of Israel. 

“My speculation is that the secrecy is a holdover from when US presidential administrations tried to offer a pretense of not siding with Israel.”

Top Republicans like Senate Minority Leader Mitch McConnell have nonetheless castigated Biden for his purported “weakness on Iran.”

While some media accounts have said Iran played a role in planning the Hamas attack, there have been indications from the US intelligence community that Iranian officials were surprised by the attack.

The history of the US–Israel relationship may be behind the failure to acknowledge the base, said an expert on overseas US military bases.

“My speculation is that the secrecy is a holdover from when US presidential administrations tried to offer a pretense of not siding with Israel in the Israeli-Palestinian and Israeli-Arab conflicts,” David Vine, a professor of anthropology at American University, told The Intercept.

“The announcement of US military bases in Israel in recent years likely reflects the dropping of that pretense and a desire to more publicly proclaim support for Israel.”