• The KSE-100 Index settled at 172,400 points, up 1.13% WoW (1,921 points), as market activity remained measured ahead of the upcoming budget announcement, with US-Iran nuclear talks remaining inconclusive.
• Auto sales (Cars, LCVs, Vans, Jeeps and EVs) rose 19% YoY to 17.6K units in May’26, with cumulative 11MFY26 sales up 45% YoY to 183.6K units, though volumes declined 20% MoM due to subdued economic activity during Eid.
• Remittances hit a record monthly high of USD 4.3bn in May’26, up 15% YoY and 20% MoM. Cumulatively, 11MFY26 remittances rose 9% YoY to USD 38.1bn.
• Central government debt increased 1.7% MoM to PKR 81.9trn (+9.3% YoY) as of Apr’26, compared to PKR 74.9trn in Apr’25.
• In the T-Bill auction on 10th June, the government raised PKR 1,962.3bn against a target of PKR 2,000bn. Cut-off yields declined on the 1M and 6M tenors by 4.1bps and 1.0bps respectively, while the 3M edged up 0.8bps and the 12M rose 40bps.
• The price of MS decreased by PKR 4.0/liter to PKR 377.78/liter, as the ex-refinery price fell PKR 28.58/liter and the petroleum levy was raised by PKR 24.74/liter. HSD remained unchanged at PKR 380.78/liter, with the ex-refinery price rising PKR 24.41/liter while the petroleum levy was reduced by PKR 24.34/liter.
• Gas production declined 1.6% WoW to 3,021mmcfd during the first week of Jun’26, driven by lower output from Qadirpur, Kandhkot, Sui, and Shewa, likely attributable to disruptions from the SNGPL pipeline rupture. Oil production also declined 1.0% WoW to 68,821bopd, due to lower output from Makori East, Maramzai, KPD, and Sharf.
• Pakistan RDA gross inflows reached USD 13,059mn as of May’26, of which USD 2,070mn has been repatriated and USD 8,283mn utilized locally, leaving a net repatriable liability of USD 2,706mn.
• Liquid foreign exchange reserves rose to USD 22.7bn, up USD 35.7mn WoW, led by a USD 24.8mn increase in SBP reserves to USD 17.2bn, with import cover at 2.76 months.
• PKR remained broadly stable against the USD, closing at 278.32 PKR/USD compared to 278.41 PKR/USD last week (+0.03% WoW).

Outlook and Recommendation

• The KSE-100 trajectory in the coming week will largely be shaped by the federal budget announcement today, with investor sentiment expected to respond to key fiscal measures and policy decisions. The SBP’s scheduled monetary policy decision on 15th June and any developments in US-Iran negotiations will serve as additional catalysts.
• The KSE-100 Index is currently trading at a P/E of 8.0x offering a dividend yield of ~6.3%.
• Our top picks include OGDC, PPL, FFC, LUCK, NBP, HUBC, PSO and ATRL.

Courtesy – AHL Research