KSE-100 October 2026: PSX loses 3,560 points in its second losing month, despite a late rally
The KSE-100 closed October at 166,409, down 2.1%. What dragged it down, why the last week turned green, and the numbers to watch in November.
The Pakistan Stock Exchange ended October in the red for the second month running. The KSE-100 index closed at 166,409 points on Friday, 30 October, down 3,560 points or 2.1% for the month, according to brokerage Arif Habib Ltd. The final week was the odd one out: the index gained about 4,034 points (2.5%), brokerage AKD Securities said, before slipping 784 points on Friday itself.
Why the PSX fell in October
Topline Securities listed the usual suspects, and they all showed up this month:
- War and oil. US-Iran tension, Houthi attacks on Saudi Arabia and tanker incidents near the Strait of Hormuz kept Brent crude near $117 a barrel. For an oil importer like Pakistan, that means pressure on the import bill and the rupee.
- A rate hike. The State Bank raised its policy rate by half a point to 12% on 26 October, its first increase since April. Higher rates make bank deposits and T-bills more attractive than shares.
- Foreign selling and profit-taking in heavyweight stocks.
- Politics at home, including uncertainty after emergency and governor’s rule in Khyber Pakhtunkhwa.
What turned the last week green
Two things, according to brokers: renewed diplomatic efforts on the US-Iran conflict, including Pakistan’s proposal for talks in Tehran, and stronger company results. Earnings of companies making up 96% of the index rose 26% year on year to Rs1.638 trillion in the first nine months of 2026. Banks, fertiliser, cement and oil and gas stocks led the rebound, with Fauji Fertiliser, MCB Bank, Engro Holdings, UBL and OGDC adding the most points.
Trading also picked up. Average daily volume in October was about 600 million shares, up 27% from September, and in the last week it more than doubled to around 1.1 billion shares a day.
What it means for ordinary investors
On Arif Habib’s numbers the market trades at about 7.1 times earnings with a 7% dividend yield, which is cheap by regional standards. But inflation was still 10.26% in September and petrol was Rs377.9 a litre in the last week of October, so the economy has not settled. Brokers expect the mood to stay tied to US-Iran news and oil prices.
What to watch in November
- The IMF board vote on Pakistan’s reviews, which would release about $1.21 billion.
- October inflation, which the Finance Division expects at 9.5% to 10.5%.
- Oil prices and any progress on US-Iran talks.
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