During the week market driven by uncertainties surrounding
the US-Iran conflict, with the US threatening to strike Iran’s energy facilities.
Re-imposition of the naval blockade of Strait of Hurmuz
pushed oil prices above US$86/bbl, the highest level since the MOU was signed
between the two countries.
On the macroeconomic front, Current Account posted a deficit
of US$139 million in FY26, as against a US$1.8 billion surplus during the same
period last year.
Net FDI dropped 34%YoY to US$1.6 billion in FY26.
Foreign exchange reserves held by State Bank of Pakistan (SBP)
decreased by US$1.2 billion to US$17.2 billion as of July 10, 2026, due to debt
repayments.
LSM index increased by 6%YoY in 11MFY26.
Auto sales rose 33%YoY for the industry in FY26 to 244,000
units, led by stable prices, lower financing rates, and discount offers by
OEMs.
IT exports surged 21%YoY to a record high of US$4.6 billion
in FY26.
Other major news flow during the week included: 1) HSD/MS
price are likely to be increased over the weekend, 2) Electricity generation
marginally increased by 1%YoY in FY26, 3) Textile exports inched up to US$17.9 billion
in FY26, 4) Largest LNG carrier berthed at Port Qasim, and 5) Pakistan, Saudi
Arabia agreed to expand energy cooperation.
Active sectors were: Jute, Refinery, and Technology &
Communication, while lagged included: Textile Weaving, Synthetic & Rayon,
and Transport.
Major selling was recorded by Mutual Funds amounting to
US$37.6 million, while major buyers were Foreigners and Individuals aggregating
to US$33.2 million.
Top performing scrips were: PIOC, CNERGY, and TPLRF1, while
laggards included: IBFL, KTML, YOU, KEL, and ISL.
According to AKD Securities, any positive progress on
US-Iran conflict, along with moderating international oil prices towards
pre-conflict levels would remain the key focus.
Additionally, favorable financial results for the period
ended June 30, 2026 would support market sentiment in the near term. Market
continues to trade at attractive valuations.
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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