Yemeni Houthi attacks on Saudi Arabia's East-West Pipeline
forced the closure of a key export route, pushing Brent crude to a 4-month high
of US$109.7/ bbl.
Oil prices eased during the final two days, with the index
recovering as fading concerns over immediate Saudi supply disruptions
ultimately outweighed fears of a broader Middle East conflict.
The GoP reintroduced austerity measures in an effort to
conserve fuel.
Pakistan’s central bank kept the policy rate unchanged at
11.50% on Monday, in line with broad market consensus.
Current account deficit narrowed sharply by 70%YoY to US$98 million
in August 2026.
Foreign exchange reserves held by SBP forex hit a record
high of US$21.4 billion, pushing the country's import cover past three months
for the first time in 5-Years.
Yields on 3 and 6 month T-bills declined to 11.38% and 11.70%,
respectively, in the latest auction.
FDI increased by 80%YoY to US$316 million during August 2026.
Auto industry sales increased by 11%YoY to 17,485 units in
August 2026, while IT exports rose 17%YoY to US$394 million.
Other major news flow during the week included: 1) GoP
presents IMF plan to retire PKR3.6 trillion gas-sector circular debt, 2)
Pakistan eyes to seek an expansion of its 30 billions yuan swap line with
China, 3) Pakistan cotton arrivals rose by 19%YoY to 2.4 million bales as of
September this year, 4) Auto financing in August 2026 reached record high of PKR393
billion, and 5) GoP approves PKR75 billion subsidy for fuel relief scheme.
Leading sectors were: Synthetic and Rayon, Leasing
Companies, and Real Estate Investment Trust.
while the lagged included: Textile Weaving, Paper &
Board, and Leathers & Tanneries.
Major buyers were Individuals (US$11.0 million) and Banks (US$2.6
million). Major selling was recorded by Mutual Funds (US$12.7 million) and
Foreigners (US$3.4 million).
Top performing scrips of the week were: PSEL, IBFL, and
CPHL, while the laggards included: GHNI, GAL, and NBP.
AKD Securities expects the market to improve on the back of
strengthening economic indicators, with the upcoming IMF review in the next
week to remain a key near-term catalyst.
A potential US-Iran deal could moderate international oil prices
from current elevated levels, the market continues to trade at attractive valuations.
The brokerage house forecasts the Index to reach 263,800 by end
December 2026.
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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