Pakistan’s benchmark KSE-100 index fell 2.1% in October 2026, shedding 3,560 points to close the month at 166,409, as geopolitical uncertainty, foreign investor outflows and profit-taking in heavyweight stocks weighed on sentiment, according to brokerage data reported on November 2, 2026.
What happened?
The index staged a four-session recovery of more than 4,800 points late in the month, crossing the 167,000 mark, before profit-taking on the final Friday session pulled it back below that level to close at 166,409.
Key details
- Arif Habib Limited noted the KSE-100 dropped 3,560 points (-2.1%) in October to close at 166,409.
- The final week began with a 664-point gain to 163,039, followed by gains of 1,429 points to 164,467 and 1,269 points to 165,736, then 1,457 points to 167,193, before a 784-point fall on Friday to 166,409.
- Topline Securities put the monthly decline at 2.09%, citing geopolitical uncertainty, foreign portfolio outflows, profit-taking and cautious investor sentiment.
- The State Bank raised its policy rate by 50 basis points to 12% at its Monetary Policy Committee meeting on October 26, citing higher energy prices and geopolitical uncertainty affecting the inflation outlook.
- Average trading volumes fell 21.8% month-on-month to 471.9 million shares in October, while average traded value dipped 20.2% to $70.1 million, according to Arif Habib Limited.
- KSE-100 index profitability, based on 96% of index weight, rose 26% year-on-year in the first nine months of calendar 2026 to Rs1,638 billion.
- Gross Roshan Digital Account inflows reached $14.2 billion as of September 2026.
What it means for people in Pakistan
For ordinary savers and pension-fund members, the monthly pullback is a reminder that share prices can swing sharply even in a year of strong company profits. The late-month rebound also shows how quickly sentiment can shift on diplomatic and policy news, so long-term investors tend to look past single-month moves rather than reacting to them.
