At PSX volatility spikes daily trading 25.7%WoW

Pakistan Stock Exchange (PSX) remained volatile during the outgoing week driven by uncertainties surrounding the US-Iran conflict, pushing oil prices to US$80/ bbl before retreating. The benchmark index declined 4,626 points decline on Wednesday, but recovered partially on Friday. The index closed the week at 182,242 points, down 3,130 points or 1.7%WoW. Market activity remained strong, with average daily trading volume up 25.7%WoW to 1.3 billion shares.

On the macroeconomic front, worker remittances for June 2026 increased by 2%YoY to US$3.5 billion, taking FY26 total to a record high of US$41.6 billion, up 9%YoY.

Foreign exchange reserves held by State Bank of Pakistan (SBP) were reported at US$18.5 billion, as of July 03, 2026.

Yields during first FY27 T-Bills auction fell by 31-40 bps across all tenors.

Cement sales rose 18%YoY in June 2026 to 4.3 million tons, led by domestic dispatches, taking full year FY26 sales to 50.5 million tons, a 4-year high.

Other major news inflow during the week included: 1) Saudi makes biggest oil price cut in decades, 2) GoP buys more LNG as flows through Hormuz fail to recover, 3) IMF forecasts 3.5% growth rate for Pakistan’s economy in FY27, 4) RDA inflows increased to US$2.8 billion in FY26, and 5) Removal of MDR to provide leverage to banks.

Top performing sectors were: Synthetic & Rayon, Refinery, and Leasing Companies, while lagged included: Sugar & Allied Industries, Close-End Mutual Funds, and Transport.

Major buying was recorded by Individuals and Banks aggregated US$24.5 million. Major sellers were Companies and Mutual Funds with flows of US$20.9 million and US$11.3 million, respectively.

Top performing scrips were: IBFL, GHNI, CNERGY, PGLC, and LOTCHEM, while laggards included: MEHT, NPL, TPLRF1, KTML, and SNGP.

According to AKD Securities, going forward, positive progress on US-Iran conflict, along with moderating international oil prices towards pre-conflict levels would remain the key focus.

Additionally, favorable financial results for the period ended June 30, 2026 would support market sentiment in the near term. Market continues to trade at attractive valuations.

The brokerage house forecasts the benchmark Index to reach 263,800 by end December 2026.

Top picks of the brokerage house include: OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.

PSX benchmark index up 3.2%WoW

Pakistan Stock Exchange (PSX) witnessed positive momentum during the week ended on July 03, 2026. The improved outlook led to a strong rally in Banks. During the week the benchmark index gained 5,801 points and closed the week at 185,372 points, up 3.2%WoW. Despite a positive week, market participation measured by average daily traded volume declined by 32.5%WoW to 1.0 billion shares.

Market witnessed positive momentum, driven by lower-than expected inflation of 11.07%YoY in June 2026, as full year CPI remained in single digits at 7.05%YoY in FY26. This fueled sentiment around a potential policy rate cut later in the year as expectations for FY27 inflation remain subdued.

The aforementioned inflation also led to a decline in yields for 2, 3, 5, and 10-year tenors in Thursday’s PIB auction.

Positive talks in Doha between the US and Iran led to improved traffic in the Strait of Hormuz, though still below pre-war levels, bringing Brent near US$70/ bbl, further supporting investor confidence.

On the macroeconomic front, trade deficit rose to US$39.5 billion for FY26, up 22%YoY, as higher oil prices weighed on imports.

Foreign exchange reserves held by Pakistan at close of the fiscal year were reported at US$18.4 billion, marking a record high year-end level.

OMC sales declined marginally by 1%YoY in FY26 to 16,190,000 tons, led by higher oil prices.

Other major news flow during the week included: 1) Pakistan debt upgraded to ‘overweight’ by Barclays, 2) FBR achieved the revised tax collection target of PKR12,957 billion for FY26, 3) Middle East producers push on with oil/ LNG loadings despite ship attacks, 4) Pakistan eyes formal energy trade with Tehran, and 5) Pakistan and US discussed maritime cooperation.

Top performing sectors were: Jute, Sugar & Allied Industries, and Synthetic & Rayon, while laggards included: Textile Spinning, Leather & Tanneries, and Exchange Traded Funds.

Major buying was recorded by Mutual Funds and Companies of US$23.5 million and US$6.6 million, respectively. Major sellers were Insurance US$20.9 million and Individuals US$4.8 million.

Top performing scrips were: IBFL, TPLRF1, PTC, UBL, and JVDC, while laggards included: KEL, SRVI, MEHT, PABC, and SNGP.

According to AKD Securities, progress on US-Iran deal, along with moderating International oil prices towards pre-conflict levels would remain the key focus.

Additionally, favorable financial results for the period ended June 30, 2026 would support market sentiment in the near term.

The brokerage house forecasts the benchmark Index to reach 263,800 by end December 2026.

Top picks of the brokerage house include: OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.

PSX shortened trading week closes almost flat

Pakistan stock Exchange (PSX) witnessed volatility during the shortened trading week, as the benchmark Index declined through the first two trading days before recovering in the final session to close at 179,571 points, up 0.4%WoW. Due to the rollover activity, market participation increased to average daily trading of 1.5 billion shares as compared to 1.4 billion shares in the prior week.

On the positive side was, the US and Iran formally agreed on a 60-day roadmap towards a final deal, sustaining the recent downward momentum in international oil prices, extending decline on expectations of smoother crude flows through the Strait of Hormuz.

Sentiments further improved by Iranian President's visit to Islamabad.

The National Assembly passed the PKR18.8 trillion FY27 budget, broadly favorable for key sectors including Cement, Steel, Refineries, Textiles, Pharma, and Technology, alongside reduction/ elimination of super tax for individuals and corporates.

Another positive was the reduction in petrol prices.

The T-Bill auction saw cut-off yields falling sharply across all tenors.

Broad money supply (M2) rose 9.2% FYTD to PKR44.2 trillion as of June 12, 2026 driven primarily by a 2.8%WoW increase in scheduled bank deposits.

Other major news flow during the week included: 1) Gulf oil tanker rates nearly doubled as Middle East producers accelerated crude exports, 2) Pakistan expected to save US$3.24 billion through conversion of the Jamshoro Power Plant, 3) Government and the oil industry reached an agreement on a stable petroleum pricing formula, and 4) GoP to handover PIA to new owners by the month-end.

The most active sectors were: Leather & Tanneries, Sugar & Allied Industries, and Textile Composite, while laggards included: Vanaspati & Allied Industries, Synthetic & Rayon, and Refinery.

Major buying was recorded by Companies of US$209.3 million, while major net selling was recorded by Foreigners of US$159.4 million.

Top performing scrips were:  KEL, SRVI, MLCF, ILP, and SNGP, while laggards included: SSOM, AIRLINK, TPLRF1, BAFL, and ABL.

According to AKD Securities, progress on US-Iran deal, along with International oil prices would remain the key focus. Additionally, ease in inflation amid decreased oil prices and favorable financial results for June 2026 would support market sentiment in the near term.

Market continues to trade at attractive valuations.

The brokerage house forecasts the benchmark index to reach 263,800 by end December 2026.

Top picks of the brokerage house include: OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.