Karachi, November 22, 2025 – Analysts at Arif Habib Limited have projected that the KSE-100 index of the Pakistan Stock Exchange (PSX) is likely to maintain steady and positive sentiment in the upcoming week starting November 24, 2025.
According to experts, the market is expected to continue the upward momentum observed over the past sessions, with any improvements on the geopolitical front potentially providing an additional boost.
The KSE-100 Index is currently trading at a price-to-earnings ratio (PER) of 8.18x, below its 15-year average of 8.59x, offering investors an attractive dividend yield of approximately 5.9%, close to the historical average of 6.11%.
For the week ending November 21, 2025, the KSE-100 index rose 168 points, closing at 162,103, driven by gains in the large-scale manufacturing (LSM) sector and positive sector-specific catalysts. Notably, FFC gained momentum following its inclusion in the KMI-30, PPL attracted interest from new offshore investments, and PIOC rallied amid potential mergers and acquisitions (M&A) activity.
On the macroeconomic front, Pakistan recorded a USD 3.28 billion trade deficit in October 2025, taking the cumulative four-month FY26 trade deficit to USD 12.6 billion, a 38.9% year-on-year increase. Meanwhile, LSM output rose by 2.7% YoY in September 2025, supported by a 2.0% month-on-month growth. Technology exports also hit a record USD 386 million in October, up 17% YoY and accounting for 47% of total services exports.
Additional economic indicators show the real effective exchange rate (REER) at 103.95 in October, net FDI at USD 179 million, and auto financing rising 33.7% YoY to PKR 315 billion. Crude oil and petroleum product imports increased significantly, while power generation slightly declined. Banking deposits rose 13% YoY to PKR 35.2 trillion, while advances fell 3.6% YoY. Profit and dividend repatriation totaled USD 385.6 million in October.
Despite market volatility, the PKR remained stable against the USD, closing at PKR 280.62. Analysts suggest that positive momentum in the stock market could continue next week, supported by favorable corporate earnings, resilient macroeconomic indicators, and steady investor sentiment.