PSX in June: La Vie En Rose

July 02, 2025 (MLN): June proved to be another remarkable month for local equities, with the benchmark index climbing to an all-time high close of 125,627.31, up 5,936 points or 4.96% over May. Positive economic indicators and a balanced budget for FY26 underpinned the rally, despite mid-month volatility triggered by geopolitical tensions.

On June 13, the Pakistan Stock Exchange (PSX) came under pressure after Israel launched strikes on Iran, sparking a global selloff that sent investors rushing to safe havens. Oil prices surged, and equities across Asia and U.S. futures tumbled.

However, after a tense 12-day conflict, Israel and Iran reached a ceasefire on June 23, as announced by U.S. President Donald Trump, just a day after Pope Leo XIV warned leaders of an “irreparable abyss.” This breakthrough sparked a sharp rebound.

On June 24, the PSX saw intense buying, forcing a market halt as the KSE-100 Index jumped 5.06% (5,878 points) to 112,045, with volumes of 146.68 million shares.

By month-end, investor confidence returned, underpinned by strong economic fundamentals, leading the PSX to close at record highs which was a clear win for local equities despite geopolitical headwinds.

Market cap

The KSE-100 market capitalization stood at Rs3.75 trillion, up by 4.95% from the previous month’s Rs3.57tr while compared to June 2024, the market cap has surged by 48.39%.

In USD terms, the market cap was recorded at $11.93bn, compared to $12.67bn in the prior month, reflecting a drop of 5.83%. While when compared to the previous year, the market capitalization witnessed a notable jump of 52.43%.

The index return in USD terms stood at 4.31%, compared to last month’s return of 7.11%.

On the economic front, Pakistan's inflation fell to 3.2% in June 2025, compared to 3.5% in the previous month and 12.6% in June  2024.

The country’s trade deficit stood at $2.32bn in June 2025, reflecting a 9.4% improvement compared to May 2025.

Furthermore, workers’ remittances reached $3.68bn in May 2025. This represents a 13.67% YoY increase compared to May 2024 and a 16% MoM from the previous month.

Federal Government unveiled Rs17.6tr Federal Budget for FY26, targeting Rs19.3tr in revenue and PSDP of Rs4.2tr.

In line with the market consensus, the Monetary Policy Committee (MPC) decided to keep the policy rate unchanged at 11%.

In addition, Pakistan recorded a current account deficit of $103 million. Last month, the country recorded a current account surplus of $47m, while in May 2024, the current account deficit stood at $235m.

Pak Rupee's Real Effective Exchange Rate Index (REER) decreased by 1.5% in May 2025 to a provisional value of 97.80 from the revised value of 99.30 in April 2025.

Further, the country recorded a value of $193.92m in May in terms of the Foreign Direct Investment (FDI), compared to worth $305.63m in the Same Period Last Year (SPLY).

In addition, the sales of cars, including LCVs, vans, and jeeps, in Pakistan increased by 35.2% in May 2025, clocking in at 14,802 units compared to 10,949 units recorded in the same month of last year.

The country’s overall nutrient offtake in May 2025 rose sharply to 311 thousand tonnes, showing a 27.3% increase compared to May 2024

The positive economic cues helped stabilize investor sentiment, pushing the KSE-100 index’s FY returns to 60.14%, while the 1HCY25 return stood at 9.12%.

Top Index Movers

During the month, Commercial Banks, Fertilizer, Oil & Gas Exploration Companies and Cement added 3,076.43, 885.98, 626.22, and 520.01, points, respectively.

On the flip side, Automobile Assembler, Technology & Communication, and Cable & Electrical Goods lost -153.83, -111.72, and -52.14 from the index, respectively.

Among individual stocks, FFC, UBL, HBL, and BAHL gained 714.41, 619.77, 507.59, and 456.84 points, respectively.

On the other hand, PSEL, INDU, HUBC and TRG dented the index by -126.92, -82.25, -59.20, and -57.14 points.

FIPI/LIPI

Foreign investors remained as net sellers, offloading the equities worth $37.6m.

Among them, Foreign Corporations led this activity by selling securities worth $43.35m while Overseas Pakistanis bought securities worth $6.03m.

The local investors remained net buyers, purchasing equities worth $37.6m.

Among them, Individuals and Companies bought securities worth $22.31m and $15.81m, respectively. However, Mutual Funds, and Brokers sold securities worth $3.27m and $2.69m.

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