Listen to article
KARACHI:
Pakistan Stock Exchange (PSX) extended its bearish run in the outgoing week, which was the fourth consecutive weekly decline, as escalating geopolitical tensions following Israeli airstrikes on Iran, surging global commodity prices and weak regional markets dented investor sentiment.
The benchmark KSE-100 index lost 2,120 points, or 1.74% week-on-week (WoW), to close at 120,023, slipping below key technical levels after touching the intra-week low of 119,770. Average daily trading volumes contracted 9.4% to 822 million shares, reflecting cautious participation amid macroeconomic uncertainty and rising oil prices, which hit a five-month high at $77 per barrel.
On a day-on-day basis, the PSX on Monday remained range bound and registered thin gains of 82 points as investors treaded cautiously ahead of monetary policy announcement later in the day, where the central bank left policy rate unchanged at 11%. Despite the conflict between Israel and
Iran, the benchmark KSE-100 index recorded a slight rise of 0.07% and settled at 122,225.
On Tuesday, the market witnessed a volatile trading session, mirroring global market trends amid escalation in geopolitical tensions in the Middle East. The index swung between a high of 666 points and low of 409 points, before closing down by 254 points.
On Wednesday, the bourse dived over 1,500 points as it came under pressure in the wake of heightened Israel-Iran conflict and unease over Pakistan’s weak economic indicators. The KSE-100 recorded a sharp drop of 1,505 points at 120,466.
The PSX extended the downward trend on Thursday and ended lower by 463 points to settle at 120,003, following a volatile session as early gains, driven by policy optimism, were wiped out by selling pressure amid Middle East tensions.
The market ended the week by closing flat on Friday as investors remained cautious amid uncertainty about the Israel-Iran conflict. Although the index touched the intra-day high of 120,829, it closed with a slight rise of 21 points.
In its report, AKD wrote that the market maintained a bearish momentum during the week as geopolitical concerns continued to weigh on investor confidence. The benchmark KSE-100 index closed the week at 120,023, down 2,120 points, or 1.74% WoW.
The week began with the monetary policy committee maintaining the status quo on Monday, aligning with market expectations. Several macroeconomic indicators were released during the week, including a current account deficit of $103 million for May 2025 and net foreign direct investment of $194 million for the month.
Additionally, the State Bank’s auctions saw a reduction in Pakistan Investment Bonds’ (PIBs) cut-off yields in contrast to an increase in T-bills’ yields. Furthermore, the State Bank-held forex reserves rose $46 million, ending the week at $11.7 billion as of June 6. In the currency market, the Pakistani rupee depreciated 0.26% WoW against the greenback, closing at 283.7/$.
Syed Danyal Hussain of JS Global noted that following the spike in commodity prices and a decline in Asian markets due to geopolitical tensions in the Middle East, the KSE-100 index dropped 3.5% (4,330 points) from its recent high seen last week. On a WoW basis, the index was down 1.7%, with average volumes falling 9.4% to 822 million shares.
Brent oil prices continued to climb up to $77 per barrel, hitting a five-month high, on supply-side fears. Accordingly, the SBP opted to maintain policy rate at 11% in its monetary policy meeting held earlier in the week, he said.
Moreover, the current account recorded a deficit of $103 million, however, the 11MFY25 figure remained comfortable with a surplus of $1.8 billion. Notably, exports fell 19% YoY while imports were up 9% YoY in May 2025.
The analyst pointed out that Pakistan secured a syndicated loan of $1 billion from a foreign commercial bank and arrangements were also underway to secure a refinancing of $1.3 billion from Chinese banks by the end of June 30.
In other news, the government raised Rs557 billion in the PIB auction against the target of Rs300 billion, with yields falling 29 to 64 basis points. Lastly, he added, June 19 was the final date for the submission of Expressions of Interest for PIA’s acquisition, where five bids were received by the Privatisation Commission.
