KARACHI: The Pakistan Stock Exchange (PSX) delivered a robust performance in the outgoing month. The easing fears of escalation substantially reduced oil prices, restored investor confidence, and attracted renewed buying interest across the board.
Despite some depressed sessions stemming from a harsh exchange and disagreements over some of the clauses of the proposed peace agreement to bring lasting peace to the Middle East, the equity market maintained its recovery mode.
Topline Securities Ltd said the KSE 100 index gained 10,968.64 points, or 6.7 per cent month-on-month. The brokerage attributed the rally to the continuation of the US-Iran ceasefire and progress in peace talks, which improved investor sentiment. A partial reopening of the Strait of Hormuz also helped lower oil prices, although occasional market weakness emerged amid disagreements over clauses of a proposed peace agreement.
Key developments during the outgoing month included inflation rising to 10.9pc in April from 7.3pc a month earlier; the State Bank of Pakistan receiving a $1.3 billion tranche from the International Monetary Fund under the Extended Fund Facility and Resilience and Sustainability Facility; car sales surging 107pc year-on-year and 42pc month-on-month to 22,015 units in April; remittances reaching $3.5bn, up 11pc year-on-year but down 8pc month-on-month; and the current account posting a deficit of $324 million in April compared with a surplus of $1.13bn in March.
Index adds 10,968 points in May as US-Iran ceasefire, lower oil prices restore investor confidence
Foreign corporates and local companies were the main sellers during the month, offloading equities worth $21m and $4m, respectively, as of May 25. Individuals and insurance companies emerged as the largest buyers, purchasing shares worth $6.5m and $4.4m, respectively.
Average daily trading volume stood at 709 million shares, while average daily traded value amounted to Rs31 billion.
According to Arif Habib Ltd (AHL), the KSE-100 index rose 4pc, or 6,119 points, week-on-week to close at 173,963. The two-session shortened trading week, owing to Eid holidays, saw concerns over potential oil supply disruptions recede, supporting equity market performance.
Oil and gas production improved during the third week of May. Gas output increased 3.4pc week-on-week to 3,130 million cubic feet per day, led by higher production from Uch and Kandhkot fields, while oil production rose 1pc to 70,924 barrels per day.
The United States and Iran agreed to extend their ceasefire for 60 days, pending approval by US President Donald Trump, following Iran’s attack on a US airbase in Kuwait in response to recent American strikes.
Pakistan secured nearly $11bn in external loans during the first 10 months of FY26, up 83pc from the corresponding period of the previous fiscal year, according to the Economic Affairs Division.
The country also received its third Qatari liquefied natural gas cargo after the tanker Fuwairit safely crossed the Strait of Hormuz and entered Pakistani waters.
The rupee remained largely stable against the dollar, closing at Rs278.50 per dollar compared with Rs278.52 a week earlier.
AHL analysts expect the market to remain steady in the coming week, with investor activity likely to stay cautious ahead of the federal budget announcement. They said greater clarity on policy measures and further progress in US-Iran negotiations could provide additional support to market sentiment.
The KSE-100 index is currently trading at a price-to-earnings ratio of 8.1 times and offers a dividend yield of around 6.3pc.
Published in Dawn, May 31st, 2026