Pakistan’s stock market staged a strong recovery during the week ended November 6, 2026, with the benchmark KSE-100 Index gaining 4.5 per cent week-on-week to close at 173,887 points, supported by improved global sentiment and a sharp decline in international oil prices, according to a weekly market review issued by research house AHL Research.
The brokerage said investor confidence improved after the US mid-term election outcome, which contributed to lower oil prices and supported equities. Inflation also showed signs of easing, with the Consumer Price Index (CPI) for October 2026 decelerating to 9.6 per cent year-on-year from 10.3 per cent in September.
AHL noted that the government raised PKR385.6 billion through treasury auctions against a target of PKR350 billion, while yields declined across most tenors. Pakistan’s trade deficit widened to US$3.9 billion in October as imports rose 11.8 per cent year-on-year to US$6.8 billion, outpacing a 2.8 per cent increase in exports to US$2.9 billion.
In the energy sector, the government reduced petrol prices by 6.7 per cent to PKR352.59 per litre and high-speed diesel prices by 4.6 per cent to PKR382.25 per litre, reflecting lower ex-refinery costs. Oil production recovered 8.9 per cent week-on-week to 64,700 barrels per day, although gas output edged down marginally.
The research house said urea offtake surged 39 per cent year-on-year to 487,000 tonnes in October, led by strong growth at Agritech, Fauji Fertilizer, Fatima Fertilizer and Engro Fertilizers. Meanwhile, refinery upliftment increased 9.7 per cent year-on-year to 1.12 million tonnes, while oil marketing company sales slipped 1 per cent amid relatively high fuel prices.
Looking ahead, AHL Research said market performance would remain sensitive to developments in US-Iran negotiations, movements in global oil prices and the upcoming MSCI review scheduled for November 11. The firm noted that the KSE-100 is currently trading at a price-to-earnings ratio of 7.3 times with a dividend yield of 6.8 per cent.
AHL’s preferred stocks include OGDC, PPL, FFC, Lucky Cement, Maple Leaf Cement, National Bank of Pakistan, Askari Bank, Nishat Power, Engro Holdings, Pakistan State Oil, DG Khan Cement and Sazgar Engineering.
