KSE-100 Index gains more than 6,100 points in holiday-shortened week amid easing geopolitical concerns and positive economic signals.
The benchmark KSE-100 Index posted a strong performance during the week ended May 29, 2026, gaining 6,119 points, or 4 percent week-on-week, to close at 173,963 points as improving investor sentiment fueled buying activity on the Pakistan Stock Exchange (PSX).
According to a research report issued by Arif Habib Limited, market confidence strengthened after the United States and Iran agreed to extend their ceasefire for an additional 60 days, easing concerns over potential disruptions to global oil supplies and supporting risk appetite across regional equity markets.
The positive sentiment was further supported by the government’s decision to reduce petroleum product prices. Petrol prices were lowered by Rs6.0 per litre to Rs409.78 per litre effective May 23, 2026, despite an increase in ex-refinery prices. The reduction was primarily driven by a lower petroleum levy and a decline in Inland Freight Equalization Margin (IFEM) charges.
Similarly, High-Speed Diesel (HSD) prices were reduced by Rs6.8 per litre to Rs402.78 per litre, mainly due to lower ex-refinery prices, although part of the benefit was offset by higher petroleum levy and IFEM adjustments.
The energy sector also reported encouraging operational performance. During the third week of May 2026, gas production increased by 3.4 percent week-on-week to 3,130 million cubic feet per day, supported by higher output from the Uch and Kandhkot fields. Oil production rose 1.0 percent to 70,924 barrels per day.
On the external front, Pakistan secured nearly $11 billion in foreign loans during the first ten months of fiscal year 2025-26, representing an 83 percent increase compared with the same period of the previous fiscal year, according to data released by the Economic Affairs Division.
The country also received a boost to energy security as its third Qatari LNG cargo successfully crossed the Strait of Hormuz and entered Pakistani waters. The LNG tanker Fuwairit is scheduled to dock at the Engro LNG Terminal, helping ensure continued gas supplies amid regional uncertainty.
Meanwhile, the Pakistani rupee remained largely stable against the US dollar, closing the week at Rs278.50 compared with Rs278.52 a week earlier.
Market participants are now closely watching the upcoming federal budget, with analysts expecting the KSE-100 Index to remain stable as investors seek clarity on taxation measures, fiscal policy and economic reforms for the next financial year.
Positive developments in US-Iran relations could provide additional support to sentiment and encourage further inflows into equities, analysts said.
At current levels, the KSE-100 Index is trading at a price-to-earnings ratio of 8.1 times and offers a dividend yield of approximately 6.3 percent, underscoring the valuation appeal of Pakistani equities for both local and foreign investors.
