Hopes of progress in US–Iran negotiations support investor sentiment, while corporate earnings rise 26% year-on-year to Rs1.638 trillion in 9MCY26.

Karachi, October 31, 2026: The Pakistan Stock Exchange (PSX) recorded a strong performance during the week ended October 30, 2026, with the benchmark KSE-100 Index gaining 2.5% week-on-week to close at around 166,000 points, compared with 162,000 points previously.

According to a market review released by Arif Habib Limited, optimism over potential progress in US–Iran negotiations supported investor sentiment throughout the week.

Meanwhile, the State Bank of Pakistan (SBP) raised its policy rate by 50 basis points on October 26, taking it to 12%, amid escalating Middle East tensions and concerns over future inflation.

Pakistan’s total liquid foreign exchange reserves declined by $78 million to $26.8 billion as of October 23. SBP reserves increased by $33 million to $21.5 billion, while commercial banks’ reserves fell by $112 million to $5.2 billion. Import cover remained broadly stable at 3.02 months.

During the week, the government raised Rs1.913 trillion against a target of Rs1.65 trillion through government securities, with yields increasing by 25–60 basis points.

Corporate profitability, covering 96% of KSE-100 Index weight, increased 26% year-on-year to Rs1.638 trillion during the first nine months of calendar year 2026.

Oil production rose 8.9% week-on-week to 64,912 barrels per day, while gas production declined 0.36% to 3,063 million cubic feet per day.

The Pakistani rupee also appreciated marginally by 0.03% against the US dollar, closing at Rs276.75.

Looking ahead, market direction is expected to remain sensitive to US–Iran negotiations and international oil prices. The KSE-100 is trading at a price-to-earnings ratio of 7.1, with a dividend yield of 7%.