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.
