Pakistan’s stock market posted strong gains during the week ended October 30, 2026, as investors responded positively to hopes of progress in ongoing US-Iran diplomatic talks, according to a weekly market review issued by research house AHL Research.

The benchmark KSE-100 Index closed at 166,000 points, up 2.5 percent from 162,000 points a week earlier. AHL Research said improving geopolitical sentiment and optimism about regional stability helped support investor confidence throughout the week.

The report noted that the State Bank of Pakistan raised the policy rate by 50 basis points to 12 percent on October 26, citing inflationary concerns arising from the intensifying Middle East conflict. Despite the rate hike, market sentiment remained positive, supported by strong corporate earnings and attractive valuations.

AHL Research highlighted that the profitability of KSE-100 companies, based on 96 percent of the index weight, increased by 26 percent year-on-year to Rs1.64 trillion during the first nine months of CY2026. Growth was broad-based across major sectors, including exploration and production, fertilizers, cement, power, automobiles, oil marketing, textiles and chemicals.

The research house observed that Pakistan’s foreign exchange reserves stood at $26.8 billion, while the rupee appreciated marginally to Rs276.75 against the US dollar. It added that future market direction would remain sensitive to developments in US-Iran negotiations and global oil price trends.

AHL Research said the KSE-100 Index is currently trading at a price-to-earnings ratio of 7.1 times, offering an attractive dividend yield of 7 percent, and maintained a preference for selected energy, banking, cement and industrial stocks.