The Pakistan Stock Exchange extended its rally during the week ended November 13, with the KSE-100 Index gaining 2.29% week-on-week to close at 178,000 points, supported by easing inflation expectations amid falling global oil prices, according to research house AHL Research.

The report noted that remittances from overseas Pakistanis rose 14% year-on-year to $3.9 billion in October, while cumulative inflows reached $14.8 billion during the first four months of FY27. It also highlighted a budget surplus of Rs1.27 trillion, equivalent to 0.9% of GDP, during the first quarter of FY27.

Automobile sales surged 41% year-on-year to 24,400 units in October, while power generation increased 5% in September. Meanwhile, oil and gas production recorded modest weekly gains and treasury bill yields declined by 22 to 48 basis points in the latest auction, reflecting improved liquidity conditions.

According to the report, Pakistan’s total liquid foreign exchange reserves stood at $26.8 billion as of November 6, providing import cover of just over three months. Petroleum prices also fell sharply under the daily pricing mechanism, with petrol and diesel prices declining by around Rs21-22 per litre during the week.

Looking ahead, AHL Research said market sentiment is likely to remain cautiously optimistic, with room for further gains if international oil prices remain stable. The brokerage noted that the KSE-100 is currently trading at a price-to-earnings ratio of 7.4 times and offers a dividend yield of 6.6%.