The Pakistan Stock Exchange ended October in negative territory, with the benchmark KSE-100 index falling 3,560 points, or 2.1 percent, during the month to close at 166,409 points, Dawn reported on 1 November from Arif Habib Ltd data. This is the full-month picture, distinct from the weekly gain reported for the outgoing week: the market recovered towards the end of the month but still finished October lower than where it started.
Dawn attributed the monthly fall to persistent Middle East tensions and domestic political uncertainty, including the imposition of emergency and governor’s rule in Khyber Pakhtunkhwa, which undermined investor confidence. Supply concerns after Houthi attacks on Saudi Arabia and tanker incidents near the Strait of Hormuz kept oil prices elevated, with Brent crude rising 0.7 percent week-on-week to $117.10 a barrel on Friday.
The late-month recovery was supported by renewed diplomatic efforts on the US-Iran conflict and better-than-expected corporate earnings. Consumer inflation slowed to 10.26 percent in September from 11.15 percent in August, while the current account deficit widened to $356 million in September from $73 million in August. Analysts expect sentiment to stay sensitive to US-Iran developments and oil prices.
Sources: Dawn, Arif Habib Ltd. Written in our own words for information only.