Karachi: The KSE-100 index closed at 168,155 points this week, marking a 2% decline from the previous week, as investor sentiment was influenced by stalled US-Iran negotiations and rising US bond yields, which have reached their highest levels since 2002. Brent crude prices remained above $100 per barrel, while domestic MS prices stayed stable at Rs399.66 per liter. HSD prices saw a decrease of Rs15.41 per liter, settling at Rs399.34 per liter.

According to JS Global, on the macroeconomic front, the Consumer Price Index (CPI) eased to 10.3% in September 2026, down from 11.1% in the previous month. However, the trade deficit widened by 6.2% year-on-year to $3.56 billion in September 2026, bringing the first quarter fiscal year 2027 deficit to $10.79 billion, up 15.1% year-on-year. The widening deficit was primarily driven by a 13.2% year-on-year increase in imports, outpacing the 10.8% year-on-year growth in exports.

In other developments, formal negotiations between the International Monetary Fund (IMF) and the government have commenced for the fourth and third review of the $7 billion Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). These discussions aim to unlock the fifth tranche under the EFF and the third tranche under the RSF. Meanwhile, in the latest Treasury bill auction, the government raised Rs880 billion against a target of Rs700 billion, with yields increasing by 49 to 75 basis points across different tenors. Additionally, the government has revised National Savings Scheme (NSS) rates, with returns increasing by up to 73 basis points.