Remittances, cheaper oil lift PSX

Benchmark KSE-100 index rallies 3,987 points during volatile week

KARACHI:

The Pakistan Stock Exchange (PSX) gained 2.29% during the outgoing week, with the benchmark KSE-100 index rising 3,987 points to close at 177,874, as falling international oil prices, strong overseas remittances and easing inflation concerns supported investor sentiment, although profit-taking and volatility towards the end of the week limited gains.

On a day-on-day basis, the PSX commenced the trading week with a massive rally on Tuesday as Monday was a holiday on account of Iqbal Day. The KSE-100 smashed past 178k on Trump's peace remarks. The index gained 5,449 points (+3.13%) to close at 179,335.

On Wednesday, the KSE-100 flirted with the 180,000 mark as the PSX witnessed a consolidation session, with the benchmark index closing on a flattish note by shedding 252 points (-0.14%) at 179,881. On Thursday, the early rally fizzled above 180k and the bourse shed 1,700 points. The index reversed early gains to close in the red, declining 1,710 points (-0.95%) to 177,374.

Late buying saved the market on the last trading day. The index initially opened on a positive note, gaining over 1,000 points (+0.60%) in the first half to above 178,000 and extending the advance to 179,284 (+1,911 points, +1.08%) intra-day high in the afternoon, before late profit-taking trimmed gains to end trading near 178k.

Arif Habib Limited (AHL) noted that the KSE-100 closed just shy of 178k points, up 2.29% from 174k last week, as the continuously declining oil prices eased inflationary concerns among market participants. Remittances from overseas Pakistanis increased 14% year-on-year to $3.9 billion during Oct'26 compared to $3.4 billion in Oct'25. Remittances grew 8% month-on-month while 4MFY27 inflows surged 14% YoY to $14.8 billion.

As per the weekly oil and gas production data, oil output rose slightly by 0.5% week-on-week to 65.2k barrels per day, while gas production rose 3.3% WoW to 3,106 million cubic feet per day (mmcfd), driven by higher production from Uch, Kandhkot, Naimat West and Sutiari Deep.

In the latest T-bill auction, the government raised a total of Rs587 billion, with cut-off yields decreasing 22-48 basis points across all tenors, according to AHL. Pakistan reported a budget surplus of Rs1,274 billion (0.9% of GDP) for 1QFY27. FBR revenue hit Rs3,086 billion (+7% YoY), while total markup payments reached Rs1,700 billion (+23% YoY).

Net metering rebounded in Sept'26 and now accounts for 1.29% of total generation, up 16 basis points YoY, and units moved higher by 28.9% MoM. Overall power generation rose 5% YoY in Sept'26.

Automobile sales for Oct'26 surged 62% MoM and 41% YoY to 24.4k units. Sazgar Engineering Works did not report its sales numbers for the month and excluding it total sales growth stood at 93% MoM and 53% YoY. Total liquid foreign exchange reserves touched $26.8 billion (-$25.8 million) as of November 6, 2026. Out of this, $21.6 billion was held by the State Bank of Pakistan (+$11.3 million), while $5.3 billion was held by commercial banks (-$37.1 million). This translated into an import cover of 3.03 months.

Meanwhile, petroleum prices under the daily pricing mechanism were revised downwards during the week, with motor spirit (MS) declining by Rs21 to Rs332/litre, while high-speed diesel (HSD) decreased Rs22 to Rs360/litre. The Pakistani rupee appreciated marginally by 0.02%, closing at Rs276.60/US dollar versus Rs276.66/$ in the previous week, AHL said in its report.

Mohsin Shafi Qureshi of JS Global said that the KSE-100 index maintained its upward momentum by gaining 3,987 points (+2.3% WoW) to close at 177,874, as oil slid to its lowest level since late August on Washington signalling restraint towards Iran and strong October remittances ($3.9 billion, +13.8% YoY), before oil rebounded on Thursday.

Average trading volumes increased 27% WoW to 1,083 million shares, while traded value rose 36% WoW to $140 million. Brent crude averaged $94/barrel during the week under review, down 6.2% from last week's average of $100/barrel, closing the week at $96/barrel. Domestically, petrol and HSD prices continued to be reduced by Rs20.59 and Rs22.25 to Rs332/litre and Rs360/litre, respectively, in line with lower international benchmarks. On the macro level, Qureshi mentioned, the SBP-held foreign exchange reserves remained stable at $21.6 billion. Externally, the ADB approved a second $500 million tranche for disaster resilience. On the legal front, the Federal Constitutional Court dismissed review petitions against its super tax judgment.

Meanwhile, energy-sector cost pressures persisted, with Nepra notifying a Rs25.30/unit incremental tariff for industrial and agricultural consumers, up from Rs22.98/unit, he added.