PSX Logs Six‑Month Peak Rally with 4.5% Gain in KSE‑100

The Pakistan Stock Exchange (PSX) recorded its most robust weekly increase in six months, with the KSE‑100 advancing 7,477 points (4.5%) to finish at 173,887. The rally was driven by improving geopolitical sentiment and a steep drop in global oil prices, buoyed by the outcome of the U.S. midterm elections.

On a day‑to‑day basis, the PSX began the week flat as profit‑booking pulled the KSE‑100 below 167,000 despite an oil price dip. The index rose 155 points (+0.09%) to close at 166,564. On Tuesday, a buying surge pushed the benchmark above 168,000, gaining 1,455 points (+0.87%) to settle at 168,018.

Mid‑week, bulls took control on Wednesday, driving the KSE‑100 up 3,995 points to reclaim the 172,000 level. The rally continued on Thursday, with the index climbing 3,366 points (+1.96%) to close at 175,380, breaching the psychological 175,000 mark.

However, profit‑taking curtailed the historic bullish streak before the long weekend. The KSE‑100 fell 1,493 points (-0.85%) to close at 173,887.

Arif Habib Limited (AHL) noted that the KSE‑100 closed at 173,887, up 4.5% week‑on‑week, supported by positive sentiment following the Democrats’ midterm election victory in the U.S., which triggered a sharp oil price decline on November 4.

The October 2026 Consumer Price Index (CPI) eased to 9.6% YoY from 10.3% in September. The government raised Rs 385.6 billion against a target of Rs 350 billion in its paper auction, while overall yields fell 0.4 to 12 basis points; the three‑year tenor saw the highest participation at Rs 165.3 billion.

Pakistan’s trade deficit stood at $3.9 billion in October 2026, with exports up 2.8% YoY (+0.2% MoM) at $2.9 billion and imports rising 11.8% YoY (+5.7% MoM) at $6.8 billion. Urea offtake for October increased 39% YoY to 487,000 tons. AGL led growth with an 87% YoY sales rise to 36,000 tons, followed by FFC (+54% YoY to 257,000 tons) and FATIMA (+30% YoY to 56,000 tons), while EFERT sales grew 13% YoY to 138,000 tons.

Oil production rebounded 8.9% week‑on‑week to 64.7 k bpd, driven by higher flows from northern fields, while gas output slipped 0.4% WoW to 3,063 mmcfd. The government cut petrol prices by 6.7% WoW to Rs 352.59/litre and high‑speed diesel by 4.6% WoW to Rs 382.25/litre, both reflecting lower ex‑refinery costs.

Refinery sales rose 9.7% YoY to 1,119 k tons in October 2026, propelled by stronger HSD and furnace‑oil volumes, and improved 3.2% month‑on‑month. Conversely, OMC sales fell, with total energy product demand down 1% YoY to 1.48 million tons, pressured by a 7.3% drop in HSD and a 2.3% decline in petrol amid higher fuel prices.

Mohsin Shafi Qureshi of JS Global observed that the KSE‑100 extended its rally, gaining 7,477 points (+4.5% WoW) to close at 173,887, as oil prices fell sharply on Iran’s openness to talks ending the war, easing inflation and external‑account concerns. Average trading volumes rose 43% WoW to 856 million shares, and traded value increased 24% WoW to $103 million.

Brent crude fell sharply to $98.5/barrel for the week versus last week’s $115.5 average. Domestically, petrol and HSD prices were reduced by Rs 25.32 and Rs 20.71 to Rs 352.59/litre and Rs 382.25/litre, respectively. Macro‑data showed October CPI easing to 9.6% YoY from 10.3% in September, and State Bank foreign‑exchange reserves rose $39 million to $21.56 billion.

The finance minister reported that the country’s external accounts remained comfortable. The IMF urged Pakistan to broaden its tax base, while the FBR chairman signaled plans to abolish the super‑tax. Public debt increased by Rs 6.2 trillion to Rs 91 trillion in FY26. Energy cost pressures persisted, with CPPA‑G seeking an 8% tariff hike and Ogra notifying a 15.3% increase in RLNG prices.

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