Market participation dropped by 22%WoW due to volatility,
with average daily traded volume declining to 863 million shares from 1.1
billion shares in the prior week.
On the external front, trade deficit widened by 33%YoY to
US$2.9 billion in November 2025, driven by 5%YoY increase in imports and 15%YoY
decline in exports.
Headline inflation remained in line with expectations at
6.1%YoY for November 2025.
Cement and E&P contributed the most to index’s gains, while
cement sector rallied on the back of 2% YoY growth in local dispatches and
LUCK’s foreign expansion announcement, while E&P sector advanced as LNG
diversion plan progressed and the auction of offshore blocks attracting Turkish
investment.
Foreign exchange reserves held by State Bank of Pakistan
(SBP) increased by US$14 million to US$14.6 billion as of November 28, 2025.
Other major news flow during the week included: 1) Petroleum
product sales drop 10% YoY in November, 2) FBR faces PKR143 billion shortfall
in achieving November 2025 target, 3) Refinery upliftment jumps 40%YoY in November,
4) Wheat sowing likely to beat target in Punjab, and 5) Business confidence
rises to 22%, as per OICCI.
Inv. Banks/ Cos, Refinery, and Cement were amongst the top
performing sectors while, Automobile parts & assembler, Textile spinning,
and Fertilizer were among the laggards.
Major buying was recorded by Individuals and Mutual Funds
with a net buy of US$17.8 million and US$12.0 million, respectively. On the
other hand, Insurance and Foreigners were major sellers with net sell of
US$32.4 million and US$9.7 million, respectively.
Top performing scrips of the week were: BNWM, PTC, SRVI,
PIOC, and TRG, while laggards included: THALL, AICL, HUMNL, HGFA, and FHAM.
According to AKD Securities the momentum in the benchmark
index of PSX is likely to continue given successful IMF Executive Board
approval of the IMF’s second review, minimal flood impact and improved credit
ratings by global agencies amid falling fixed income yields.
Investors’ sentiment are expected to further improve on the
likelihood of foreign portfolio and direct investment flows, driven by improved
relations with the United States and Saudi Arabia. This outlook is also supported
by the lack of alternative investment avenues and the attractive valuation of
local equities.
Top picks of AKD Securities include: MEBL, MCB, HBL, OGDC,
PPL, PSO, ENGROH, LUCK, DGKC, FCCL, ILP, and INDU.
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