Market participation improved by 9.7%WoW, with average daily
traded volume rising to 1.3 billion shares, as compared to 1.1 billion shares
in the prior week.
Momentum was driven by a favorable new year effect alongside
a softer than expected December 2025 inflation of 5.6%.
Sentiments were further buoyed by sharp rally in the E&P
sector, following OGDC’s oil and gas discovery in Nashpa Block, where a second
formation delivered 4,100 barrels oil and 10.5mmcfd gas, adding to the earlier
discovery announced in December 2025.
OMC volumes also increased by 6%YoY during December 2025.
On the macroeconomic front, Trade deficit increased by
24%YoY to US$3.7 billion during December 2025, whereas, GDP grew by 3.7%YoY
during 1QFY26.
Foreign exchange reserves held by State Bank of Pakistan (SBP)
increased by US$13 million to US$15.9 billion as of December 26, 2025.
Other major news flow during the week included: 1) SBP buys
US$6.9 billion from currency market in 12 months, 2) FBR collects PKR6.2 trillion
in 1HFY26, but falls short by PKR338 billion of target, 3) Pakistan Eyes US$1 billion
Liability Settlement via UAE investment in Fauji Group, 4) US seeks Pakistani
partnership in locomotive sales, mineral exploration, and 5) Pakistan gets
ready to launch first Panda bond in China.
Transport, Property, Vanaspati & Allied Industries, Oil
& Gas Exploration Companies, and Pharmaceuticals were amongst the top
performing sectors, while Jute, Woollen, Cement, Real estate Investment Trust,
and Textile Composite, were amongst the laggards.
Major buying was recorded by Mutual Funds and Companies with
a net buy of US$24.5 million and US$9.4 million, respectively. Foreigners and
Banks were major sellers with net sell of US$18.8 million and US$10.7 million
respectively.
Top performing scrips of the week were: JVDC, SSOM, UBL,
FFL, and EFERT, while laggards included: DGKC, CHCC, KTML, KOHC, and MLCF.
AKD Securities foresees the positive momentum in the
benchmark index to continue due to further monetary easing driven by improving
external account position and continuous focus on reforms amid political
stability.
The brokerage forecasts the benchmark Index to reach 263,800
by December 2026.
Investors’ sentiments are expected to improve on the
likelihood of foreign portfolio and direct investment flows, driven by improved
relations with the United States and Saudi Arabia.
Top picks of the brokerage house include: OGDC, PPL, UBL,
MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.
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