Escalating attacks along key shipping routes by both US and
Iran and Houthis targeting Saudi energy facilities, raised concerns about
energy supplies and pushed global oil prices higher. Domestically, fuel prices
also increased.
On a positive note, Moody’s highlighted that Pakistan
absorbed the current conflict shock better than the 2022 crisis, supported by
improved macroeconomic indicators.
The Workers’ Remittances in August 2026 rose by 17%YoY to
US$3.7 billion.
Foreign exchange reserves held by State Bank of Pakistan (SBP)
rose to US$18.3 billion as of September 4, 2026.
The Prime Minister approved the draft auto policy for
FY27-31, although IMF approval remains pending.
RDA inflows rose 58%YoY to US$259 million in August 2026.
Other major news flow during the week included: 1) IMF
review talks scheduled to start on September 22, 2026, 2) Qatari LNG cargo
bound for Pakistan cleared Strait of Hormuz, 3) GoP cuts HSD refining margin
cap to US$30/ bbl, 4) Pakistan signs cybersecurity cooperation agreement with
Saudi Arabia, and 5) Pakistan- Australia likely to finalize investment
agreement soon.
Major selling was recorded by Foreigners (US$7.2 million)
and Mutual Funds (US$5.3 million), while the major buyers were Individuals (US$10.8
million) and Companies (US$5.5 million).
Top performing scrips were: PSEL, AICL, and LCI, while the
laggards included: PGLC, SSGC, and CHCC.
AKD Securities expects the market to improve on the back of
strengthening economic indicators.
Upcoming IMF review and monetary policy announcement to remain
key near-term catalysts.
A potential US-Iran deal could moderate international oil
prices from current elevated levels.
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.
No comments:
Post a Comment