PSX up 2.8% WoW, extends monthly rally

The KSE-100 index closed the week on a strong note, rising 2.8% to settle at 166,678 points as broad-based buying in fertiliser, banks, technology, cement and exploration & production (E&P) sectors lifted sentiment despite a sharp drop in trading volumes.

The latest advance reinforced the market's upward trajectory in November, during which the benchmark index added 5,046 points month-on-month (MoM), supported by sector-specific catalysts and improving macro indicators.

On a day-on-day basis, the PSX experienced a neutral Monday, marked by muted volatility and limited movement as investors awaited clearer signals on the first day of the rollover week. The KSE-100 index settled at 161,984, down 119 points, or 0.07%.

Tuesday was another lacklustre day as the index closed at 161,693, down 292 points, or 0.18%. Finally, as the rollover week progressed, the bourse began to show signs of recovery on Wednesday, with the KSE-100 closing at 163,189, up 1,496 points, or 0.93%.

On Thursday, bulls gained firm control as concerns surrounding the rollover week subsided. The index posted strong gains, closing at 165,373, up 2,185 points, or 1.34%. Notably, the index reclaimed the 165k level at close after 25 days, which was last seen on October 22.

On Friday, the PSX closed November 2025 on a strong note as the KSE-100 extended its upward momentum to settle at 166,678, gaining 1,304 points, or 0.99%.

Arif Habib Limited (AHL) noted that the KSE-100 index gained momentum in Nov'25 and closed at 166,678, posting a MoM increase of 5,046 points. The market's bullish shift was driven by positive sector catalysts. The fertiliser sector gained pace after getting the government's approval to shift from costly re-gasified liquefied natural gas (RLNG) to Mari gas, which would ease subsidy pressure and support stable urea prices.

Fauji Fertiliser Company (FFC) outperformed on its KMI-30 inclusion, Pakistan Petroleum Ltd (PPL) benefited from interest in the upcoming offshore exploration activity and progress on Reko Diq's financial close while Pioneer Cement rallied on potential M&A developments, AHL said.

In Nov'25, the KSE-100 depicted a return of 3.1% and 3.3% in rupee and dollar terms, respectively. During the week, Pakistan recorded a trade deficit of $3.28 billion in Oct'25. Cumulatively, the 4MFY26 trade deficit widened 38.9% year-on-year (YoY) to $12.6 billion.

The large-scale manufacturing (LSM) output grew 2.7% YoY in Sept'25, accompanied by a 2% uptick on a MoM basis. Remittances by overseas Pakistanis rose 12% YoY to $3.42 billion in Oct'25 versus $3.05 billion in Oct'24, while cumulative inflows during 4MFY26 stood at $12.96 billion, up 9% YoY, AHL added.

"KSE-100 closed the week on a strong note," commented Muhammad Waqas Ghani, Research Head at JS Global. The index opened the week at 162,103 and closed at 166,678, up 4,575 points (+2.8%). The rally was broad-based, with fertiliser (+4.9%), banking (+2.9%), tech & communication (+2.8%), cement (+2.6%) and E&P (+2.5%) sectors driving the sentiment.

However, average daily traded volumes slipped 47% WoW, reflecting a more selective trading environment, Ghani said. The government raised over Rs1 trillion through auctions of T-bills, PIBs and Government Ijara Sukuk. Notably, during the T-bill auction held during the week, the government raised Rs749 billion against the target of Rs650 billion, with yields easing 4-10 basis points across different tenors.

On the IMF front, the lender flagged a lack of internal audits and weak parliamentary oversight as major risks to public funds. In the energy sector, Ogra recommended an increase in gas tariffs for SSGC and SNGPL in its tariff determination. In other news, despite media speculation about potential divestments or restructuring, Barrick's interim CEO Mark Hill reaffirmed the company's commitment to the Reko Diq copper and gold mining project, the JS research head said. Lastly, the State Bank's forex reserves stood stable at $14.6 billion.