Quick snapshot

• KSE-100 close (end Nov 2025): 166,678 — up ≈5,046 points (+3.1% m/m). Mettis Global+1
• Key sector leaders: banking, fertilizers, cement. Mettis Global
• Monthly drivers: firmer rupee, improving macro signals, stronger foreign interest. Pakistan Stock Exchange+1

1. November at a glance — KSE-100 performance

November proved a strong month for the Pakistan Stock Exchange. The KSE-100 Index closed the month at about 166,678 points, gaining roughly 5,046 points (≈ +3.1% month-on-month) as investor sentiment improved on clearer policy signals and sector-specific catalysts. Year-on-year the index has recorded sizeable gains, reflecting strong recovery from last year’s lows. Mettis Global+1

Why it mattered: this rally showed that domestic investors and selective foreign buyers were willing to push into Pakistani equities once macro indicators (inflation, currency stability) started to align with market expectations.

2. What drove the market? (Simple breakdown)

Several global and local factors combined to shape market moves in November:

• Firmer rupee / currency stability: A relatively stable rupee in late November helped reduce imported-inflation fears and reassured foreign investors considering equity exposure. Average USD/PKR levels in the final week were around PKR 280.5 per USD, providing a calmer FX backdrop. Wise
• Macro indicators: Early signs of easing macro pressures — including tighter monetary posture earlier in the year and reduced inflationary surprises — supported risk appetite. Business Recorder
• Sector catalysts: Large weights such as banking, fertilizer and cement led gains as earnings outlooks and sectoral flows improved. These sectors have historically carried market rallies when domestic demand and credit conditions look steady. Mettis Global

3. Trading activity & volumes

Trading activity in November stayed robust. PSX daily summaries in late November showed high participation with several sessions recording large daily volumes and values — a sign that both retail and institutional players were active during the rally. The higher volumes underlined conviction behind the move rather than a low-liquidity spike. Pakistan Stock Exchange

4. Inflation context — what investors watched

Inflation readings in late 2025 were closely monitored by investors. November inflation prints were reported in the low single digits to mid-single digits depending on the source and measures; reports through the month indicated CPI readings in the ~6.1–6.5% range (year-on-year) in late November — a key data point that reduced pressure on real yields and supported market sentiment. (Analysts had been watching food and energy prices as the primary risk factors to this outlook.) Business Recorder+1

5. Top movers (what outperformed)

In November, market gains were concentrated in large cap names within the sectors mentioned earlier. Fertilizer names and major banks showed particularly strong flows as investors priced better earnings visibility and balance-sheet resilience. (For exact weekly/daily top-gainer tickers and percentage moves, check the PSX daily market performers page.) Pakistan Stock Exchange+1

6. How global shifts fed into local moves

Global developments — notably oil price swings, U.S. monetary policy cues, and risk-sentiment in EM flows — had a direct line into PSX performance:

• Oil price movements affect Pakistan through import bills and inflation expectations. Softer oil helps margins and reduces fiscal strain.
• Global rates & Fed outlook influence capital flows to EMs; a calmer global rate environment reduces the risk premium for Pakistani assets.
• Regional geopolitics still matter: any instability can quickly change the local risk premium and trigger short-term selloffs.

In November, the alignment of these global factors with improving domestic signals helped the market sustain gains rather than reverse quickly.

7. Risks to watch next

While November was positive, investors should keep an eye on:

• Commodity volatility (oil & food): sudden spikes could push inflation up and dent real returns.
• External financing flows: timely external funding and FX reserve changes remain crucial — any disruption could pressure the rupee and risk sentiment.
• Earnings season surprises: corporate results that miss expectations would test current bullishness.

8. What investors should do (practical takeaways)

• Stay diversified: combine large-cap, defensive sectors (banking, consumer staples) with selective cyclicals.
• Watch FX exposure: hedging or keeping USD cash buffers may help during sudden rupee moves.
• Monitor macro news: inflation prints and trade/FX announcements tend to move markets quickly—set news alerts for PSX and SBP releases.
• Use dollar-adjusted benchmarks if you are a foreign investor to track real returns.

9. Bottom line

November 2025 was a month in which the KSE-100 demonstrated resilience, rallying on clearer policy signals, stable currency action and sector-specific strength. While global shifts will always shape the near-term outlook, Pakistan’s market gains in November reflected a growing confidence among domestic and international investors that the economy is on a steadier footing. Mettis Global+1