Moaaz Manzoor

The Pakistan Stock Exchange (PSX) closed November on a firm and upbeat trajectory as the KSE-100 Index gained strong momentum, settling at 166,678 points after a month-on-month increase of 5,046 points. The benchmark delivered returns of 3.1 percent in PKR terms and 3.3 percent in USD terms, driven by sector-specific triggers, improved investor sentiment, and optimism surrounding Pakistan’s economic engagements.

A significant portion of the market’s bullish shift stemmed from strong performance in key sectors. The Fertilizer sector led the gains, with Fauji Fertilizer Company (FFC) outperforming following its inclusion in the KMI-30 index. Pakistan Petroleum Limited (PPL) attracted investor interest amid expectations for upcoming offshore exploration and progress toward Reko Diq’s Final Close. Pioneer Cement (PIOC) surged sharply on potential M&A developments.

Trading activity showed a mixed pattern. According to Arif Habib Limited, volumes were led by Technology (140 million shares), Banks (99 million), Investment Banks (99 million), and Power (71 million). On a scrip basis, WorldCall Telecom (WTL) topped the volume chart with 72.7 million shares, followed by K-Electric (57.4 million), First National Equities (39.9 million), Bank of Punjab (30.6 million), and HASCOL (26.3 million).
In traded value, Cement dominated at USD 16 million, followed by Banks (USD 15 million), E&P (USD 13 million), Technology (USD 11 million), and Refinery (USD 9 million). Scrip-wise, FFC (USD 6.6 million), PPL (USD 5.9 million), PSO (USD 4.1 million), NBP (USD 4.1 million), and BOP (USD 3.8 million) led the chart. Sector-wise, Fertilizer contributed 3,533 points to the index, followed by E&P (973 points), Cement (617 points), Power (330 points), and Miscellaneous (169 points).

Negative contributions came from Banks (-762 points), Pharmaceuticals (-185 points), and Engineering (-71 points). Major sector gainers included Fertilizer (18%), Leather (16%), Misc (8%), Power (4%), and Modarabas (4%). Notable losers were Leasing (-10%), Vanaspati (-9%), Engineering (-8%), and Woollen (-5%). Among individual scrips, PIOC, FFC, PSEL, SRVI, and DHPL rose 64%, 22%, 19%, 16%, and 16%, respectively, while PABC, BWCL, PGLC, SSOM, and ISL posted declines of 15%, 10%, 10%, 9%, and 8%, respectively.

Macro indicators also shaped market direction. CPI for October stood at 6.2% YoY, the highest since October 2024, while LSMI output grew 2.7% YoY in September. The country recorded a USD 3.28 billion trade deficit in October, pushing the 4MFY26 deficit to USD 12.6 billion, up 38.9% YoY. Remittances grew 12% YoY to USD 3.42 billion, and SBP reserves increased by USD 58 million to USD 14.56 billion.

Commenting on market behavior, Syed Zafar Abbas, Manager at Zahid Latif Khan Securities, said the month remained volatile, with early-month pressure around 159,000 points, but the index rebounded sharply on developments related to the super tax, which generally applies to listed corporates. Muhammad Bilal Ejaz, Research Analyst at Ismail Iqbal Securities, told Wealth Pakistan that IMF-related optimism and FFC’s Shariah index inclusion were key drivers behind the 3.1 percent monthly gain.

Valuations remain attractive, with the KSE-100 trading at a 7.9x PER for 2025—below its 15-year average of 8.6x—offering a dividend yield of around 6.2 percent. Preferred stocks highlighted by analysts include OGDC, PPL, MCB, FFC, SYS, GAL, MUGHAL, PAEL, FCCL, KOHC, PSO, GWLC, and ATRL.

Overall, November proved to be a constructive month for the PSX, with expectations of continued stability hinging on foreign inflows, policy clarity, and sustained sectoral momentum.

Credit: INP-WealthPk