PSX October 2026: KSE-100 Sheds 3,560 Points
PSX October 2026 ended in negative territory, with the benchmark KSE-100 index shedding 3,560 points over the month to settle at 166,409. The fall of about 2.1 per cent came as geopolitical uncertainty, foreign portfolio outflows and profit-taking in heavyweight stocks weighed on investor sentiment through the month.
Arif Habib Limited put the monthly decline at 3,560 points, or 2.1 per cent, while Topline Securities recorded a fall of 2.09 per cent for October. Both brokerages pointed to the same pressures: persistent geopolitical tensions, cautious trading ahead of key policy decisions, and selling by foreign investors.
PSX October 2026: how the final week unfolded
The month ended with a sharp reversal. After four straight sessions of gains, the index fell 784 points, or 0.47 per cent, on Friday, October 30, to close at 166,409. Profit-taking pulled the market back below the 167,000 level it had reclaimed a day earlier.
The recovery itself had been strong. The index gained 664 points on Monday to close at 163,039, then rose 1,429 points on Tuesday to 164,467 as monetary policy caution met diplomatic optimism. Wednesday added 1,269 points for a close of 165,736, and Thursday added 1,457 points to reach 167,193. The four sessions together added about 4,800 points, so Friday’s fall gave back only part of the week’s gains.
Feature Pakistan covered Friday’s session as it happened in the PSX Friday decline report, which recorded the same 784-point fall and the 166,409 close. The monthly figures now put that session in context: a weak month overall, softened by a strong final week.
Why the market stayed under pressure
The State Bank of Pakistan raised its policy rate by 50 basis points to 12 per cent at its Monetary Policy Committee meeting on October 26, citing higher energy prices and geopolitical uncertainty for the domestic inflation outlook. Treasury bill cut-off yields rose through the month in response, with the one-month yield moving from 11.68 per cent to 12.11 per cent and the 12-month yield from 12.49 per cent to 12.89 per cent.
Oil price movements added to the caution. Higher crude prices fed into fuel costs for power generation, and distribution companies sought a positive fuel cost adjustment of Rs2.56 per unit.
Two other monthly markers stood out. The finance ministry’s staff-level agreement with the International Monetary Fund on the fourth Extended Fund Facility review and the third Resilience and Sustainability Facility review paved the way for $1 billion and $210 million in disbursements, subject to executive board approval. Gross Roshan Digital Account inflows reached $14.2 billion as of September 2026.
What the numbers mean for investors
Average trading volumes fell 21.8 per cent month on month to 471.9 million shares in October, while average traded value slipped 20.2 per cent to $70.1 million, according to Arif Habib Limited.
The contrast between the two measures shows a market that traded actively on some days but thinned out overall. For small investors, the lesson of October is familiar: sharp weekly recoveries can sit inside a falling month.
The rate decision will remain the key watchpoint in November. The central bank also doubled the minimum capital requirement for banks to Rs20 billion, to be met by December 2030, with statutory reserves now eligible. That step, along with the inflation path and the IMF board decision, will shape whether October’s weakness carries into the new month. Business reaction to the rate rise was mixed, as Feature Pakistan reported in the economists’ warning on the SBP rate hike.
Frequently asked questions
How much did the KSE-100 fall in October 2026?
The benchmark index fell 3,560 points, or about 2.1 per cent, to close October at 166,409, according to Arif Habib Limited. Topline Securities recorded a fall of 2.09 per cent for the month.
What caused the PSX October 2026 decline?
Geopolitical uncertainty, foreign portfolio outflows and profit-taking in heavyweight stocks weighed on sentiment. The State Bank’s 50-basis-point rate rise on October 26 and higher oil prices added to the caution.
How did the final week of October unfold?
The index gained about 4,800 points across four sessions, rising from 163,039 on Monday to 167,193 on Thursday, before profit-taking pulled it down 784 points on Friday to 166,409.
What should investors watch in November?
The inflation path, the IMF executive board decision on the staff-level agreement, and the market’s response to the higher 12 per cent policy rate will shape the next direction.
