ISLAMABAD: Pakistan’s stock market recorded a 3.6 percent month-on-month increase in June, a leading brokerage firm said in its report on Tuesday, citing improved investor confidence due to the United States-Iran peace deal as the main driver of the surge.
The US and Iran signed the Islamabad Memorandum of Understanding, an interim peace deal mediated by Pakistan, this month following months of conflict that drove oil prices higher and created inflationary pressures worldwide.
While tensions persist over the Strait of Hormuz with the leaderships of Iran and the US exchanging threats frequently, easing geopolitical tensions have reduced concerns over regional instability and oil price volatility, the report said. It added that this has led investors to increase their exposure to equities.
“The KSE-100 Index recorded a 3.6 percent month-on-month increase, primarily driven by improved investor sentiment following the ceasefire/peace agreement between the United States and Iran,” the report said.
It added that while Pakistan’s Consumer Price Inflation (CPI) for May was recorded at 11.66 percent compared to April’s 10.89 percent, the country’s trade deficit
in May was clocked in at $2.58 billion, down by 14 percent year-on-year and 39 percent month-on-month.
Pakistan’s Finance Division said in a report on Tuesday that inflation is anticipated to remain within the 11-12 percent range this month.
It said other economic developments that proved positive for the country were that Pakistan’s remittances for May 2026 were recorded at $4.3bn, reflecting an increase of 15 percent YoY and 20 percent MoM.
Pakistan’s current account surplus for May 2026 was recorded at $459 million compared to a deficit of $276 million recorded in April 2026, the report said.
Insurance and individuals were major sellers in the stock market this month, Topline Securities said, with net equity sales worth $55 million and $25 million.
“Mutual funds were major buyers in the market, as they net purchased equities worth $46 million as of yesterday`s close,” the report added.
It said the average daily traded volume and value during the month stood at 836 million shares and Rs39 billion ($140.3 million), respectively.
