KARACHI: According to Beyond Time News, Pakistan Stock Exchange (PSX) closed the holiday-shortened week on a strong note, with investor confidence improving after a reported extension of the US-Iran ceasefire, which eased concerns over global energy supply disruptions.
The benchmark KSE-100 index surged 4% week-on-week, closing at 173,963 points, a gain of 6,119 points during one of the shortest trading weeks of the year due to Eid holidays.
Market Opens Strong, Maintains Momentum
The market began the week with a sharp rally, as the KSE-100 jumped 3,881 points (2.31%) on Monday to close at 171,726 points.
After a three-day holiday break, bullish momentum continued on Friday when the index rose another 2,238 points (1.30%), ending the week at 173,963 points.
Analysts said the consistent upward trend reflected improving risk appetite among investors and positive macroeconomic expectations.
Geopolitical Relief Boosts Confidence
According to Arif Habib Limited (AHL), market sentiment improved following news of a 60-day extension in the US-Iran ceasefire, which helped ease fears of potential disruptions in global oil supply.
The development contributed to stronger performance across energy-linked and broader equity sectors, supporting overall market gains.
Energy Prices and Supply Trends
Fuel price adjustments also remained in focus during the week:
- Motor spirit (petrol) price fell by Rs6 per litre to Rs409.78
- High-speed diesel declined by Rs6.8 per litre to Rs402.78
The reduction came despite fluctuations in global oil prices, mainly due to adjustments in petroleum levies and freight margins.
Meanwhile, oil and gas production showed improvement in the third week of May:
- Gas output rose 3.4% week-on-week to 3,130 mmcfd
- Oil production increased 1% week-on-week to 70,924 barrels per day
External Financing and Economic Developments
The Economic Affairs Division reported that Pakistan secured nearly $11 billion in external loans during the first 10 months of FY2025–26, marking an 83% increase compared to the same period last year.
Separately, Pakistan also received its third Qatari LNG cargo, with the tanker Fuwairit entering Pakistani waters for delivery to the Engro LNG terminal.
Monthly Market Performance Remains Strong
AHL noted that the KSE-100 index gained 10,969 points in May 2026, delivering a monthly return of 6.7%.
The rally was largely driven by:
- Progress in US-Iran diplomatic talks
- Improved global risk sentiment
- Expectations of reduced energy market volatility
The Consumer Price Index for April 2026 rose to 10.9% year-on-year, compared to 7.3% in March, reflecting renewed inflationary pressure.
PSX Surges Over 2,500 Points as US–Iran Peace Hopes Lift Investor Sentiment
Broader Economic Indicators
Topline Securities highlighted several key macroeconomic developments during the month:
- CPI for April: 10.9% (up from 7.3%)
- IMF inflows: $1.3 billion under EFF and RSF programs
- Auto sales: 22,015 units (up 107% YoY)
- Remittances: $3.5 billion (up 11% YoY)
- Current account balance: $324 million deficit (vs surplus of $1.134 billion in March)
Analysts said these mixed signals reflected both recovery momentum and ongoing external pressures.
Outlook
Market experts suggest that investor sentiment will likely remain sensitive to global geopolitical developments, inflation trends, and IMF-related funding flows in the coming weeks.
