The PSX weekly rally gained fresh momentum, with the benchmark KSE-100 index rising 7,477 points, or 4.5 per cent, to close at 173,887 for the week ended November 6 — the market’s strongest week in nearly six months.
The index rose on four of the five sessions. It opened the week with a gain of 155 points on Monday to close at 166,564, then added 1,455 points on Tuesday to finish at 168,018. Wednesday brought the biggest single-day jump, as the index surged 3,995 points and reclaimed the 172,000 mark. The rally ran on Thursday, when the index rose 3,366 points to 175,380 and crossed the 175,000 level. Friday ended the run, with profit-taking pulling the index down 1,493 points to 173,887 ahead of the long weekend.
Arif Habib Limited said in its weekly report that sentiment improved after the Democrats won the US midterm elections, which pushed international oil prices sharply lower on November 4. Brent crude closed the week at $98.5 a barrel, down from an average of $115.5 the week before, according to the brokerage. Mohsin Shafi Qureshi of JS Global said oil prices also fell as Iran showed openness to talks to end the war, which eased worries over inflation and the external account.
What drove the PSX weekly rally
The market had support from the economic data as well. The Consumer Price Index for October came in at 9.6 per cent year on year, down from 10.3 per cent in September. Pakistan’s trade deficit stood at $3.9 billion for the month, with exports up 2.8 per cent year on year to $2.9 billion and imports up 11.8 per cent to $6.8 billion.
The State Bank’s foreign exchange reserves rose by $39 million to $21.56 billion. The IMF urged Pakistan to widen its tax base during the week, while the Federal Board of Revenue chairman signalled that the government intended to abolish the super tax. The government raised Rs385.6 billion in its auction of treasury papers, against a target of Rs350 billion, and yields fell by 0.4 to 12 basis points.
Public debt rose by Rs6.2 trillion to Rs91 trillion in the 2026 fiscal year. Energy cost pressures persisted, with the Central Power Purchasing Agency seeking an 8 per cent tariff hike and the regulator notifying a 15.3 per cent rise in RLNG prices.
A week of heavy trading
Trading stayed busy all week. The index touched a high of 176,604 points and a low of 166,989, a range of 9,614 points. Market capitalisation rose by Rs520 billion over the week to Rs18,909 billion. A total of 4.28 billion shares changed hands, worth Rs142 billion.
Average daily traded volume rose 43 per cent week on week to 856 million shares, while traded value rose 24 per cent to $103 million. On Friday alone, volume reached 1.47 billion shares, up 48.02 per cent, though traded value fell 23.49 per cent to Rs22.5 billion. Bawany Air (R) led the volume chart with 687 million shares.
Friday’s selling hit the heavyweights. United Bank, Lucky Cement, Engro Holdings, Fauji Fertiliser Company, Pakistan Petroleum, Oil and Gas Development Company, Meezan Bank, Systems Ltd, National Bank and Pakistan State Oil together wiped out 966 points, Dawn reported. The KSE-100 fell 1,493 points on Friday as investors booked profits before the long weekend.
Fuel prices also eased during the week. The Oil and Gas Regulatory Authority has notified petrol at Rs346 a litre and high-speed diesel at Rs378 for November 7 to 10, after a fifth straight cut. Urea offtake rose 39 per cent year on year in October to 487,000 tons, while oil production rebounded 8.9 per cent week on week to 64,700 barrels a day and gas production slipped 0.4 per cent to 3,063 million cubic feet a day.
What investors watch next
Arif Habib Limited sees 170,000 as key support and 178,000 as resistance for the coming week. The MSCI review due on November 11 will also be watched, and analysts expect market direction to stay sensitive to developments in US-Iran talks and the path of oil prices. The KSE-100 trades at a price-to-earnings ratio of 7.3 and offers a dividend yield of 6.8 per cent.
Analysts said the market could keep its positive momentum as geopolitical sentiment improves and oil prices ease. Profit-taking near recent highs, economic uncertainty and global developments may still keep trading volatile, so selective buying looks preferable. Asian tech shares fell sharply on the same worries about AI data centres that weighed on global markets last week.
Frequently asked questions
How much did the KSE-100 gain this week?
The KSE-100 index gained 7,477 points, or 4.5 per cent, to close at 173,887 for the week ended November 6. It was the market’s strongest weekly rally in nearly six months.
Why did the PSX rally?
The rally followed the Democrats’ victory in the US midterm elections and a sharp fall in international oil prices, which eased worries over inflation and Pakistan’s external account. Softer October inflation, at 9.6 per cent, also helped sentiment.
What happened on Friday?
Investors booked profits ahead of the long weekend, and the index fell 1,493 points, or 0.85 per cent, to 173,887. The drop trimmed the week’s gains but left the market up 4.5 per cent overall.
What comes next for the market?
Analysts point to the MSCI review on November 11 and the direction of oil prices and US-Iran talks. Arif Habib Limited sees support at 170,000 and resistance at 178,000 for the coming week.
