Moody’s one-notch upgrade of Pakistan’s sovereign rating to
B3 due to improvements in governance, provided a modest boost to investors’
sentiment.
The US-Iran situation remained under control, keeping oil
prices below US$90/ bbl on Friday’s close, as Iran continued separate
discussions with Oman and Qatar aimed at facilitating the reopening of the
Strait of Hormuz.
Foreign exchange reserves held by State Bank of Pakistan (SBP)
rose modestly to US$17.1 billion as of August 21, 2026.
Central bank transferred PKR1.9 trillion in profits to the
Federal Government, PKR496 billion higher than the budgeted transfer.
Banking
sector deposits rose by 14% YoY to PkR39.1 trillion as of end July 2026.
Other major news flow during the week included: 1) Saudi
team and Prime Minister discuss investment in agriculture, real estate, energy
and IT, 2) new SPV established for the privatization of three Discos, 3)
Refineries to sign upgrade deals within 10 days, 4) Pakistan received US$763 million
loans, grants in July this year, and 5) Government. introduces a performance
based rebate on incremental exports.
Top performing sectors were: Textile Composite, FMCG, and
Power, while sectors that lagged the most were: OMCs, Inv. Cos., and
Technology.
Major net buying was recorded by Mutual Funds (US$6.2
million) and Companies with (US$4.3 million). Major net sellers were Foreigners
with US$10.6 million.
Top performing scrips were: AICL, THALL, KTML, POWER, and
ABOT, while laggards included: PGLC, SRVI, TRG, NBP, and HMB.
AKD Securities expects market to improve on strengthening
economic indicators amid easing geopolitical tensions. A potential US-Iran deal
could moderate international oil prices. 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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