Brent crude price remained elevated amid continued
disruptions to energy supplies through the Strait of Hormuz and renewed attacks
on Saudi energy infrastructure.
On the macroeconomic front, Pakistan recorded a current
account deficit (CAD) of US$356 million in September 2026, as compared to a
surplus of US$123 million during the same period last year, reflecting some
added pressure on the external account.
Remittances by overseas Pakistanis rose 13%YoY in September
2026 to US$3.6 billion.
The GoP raised PKR660 billion through the latest T-Bills
auction, with yields remaining broadly stable following the sharp repricing in
the previous auction.
Foreign exchange reserves held by State Bank of Pakistan (SBP)
increased to US$21.47 billion as of October 09, 2026.
Passenger car sales declined by 9.8%YoY to 10,939 units in
September 2026.
Textile exports grew by 5.2%YoY during 1QFY27, led by growth
in ready-made garments, knitwear and cotton yarn.
Other major news flow during the week included: 1) FBR
collection exceeded Q1 collection target, 2) IMF projected Pakistan’s GDP
growth at 3.5% for FY27, while forecasting inflation at 9.9%, 3) Pakistan
received first LNG cargo of October, 4) Refineries produced 92,482 tons of LPG
in July-August, and 5) RDA attracted US$251 millio in September.
Leasing companies, Woolen, and Jute remained top performing
sectors, while laggards included: Apparel, Technology & Communication, and
Transport.
Major selling was recorded by Mutual Funds amounting to US$10.7
million. On the contrary, major net buyers were Banks (US$8.3 million) and
Companies with US$6.7 million.
Top performing scrips were: BNWM, AGP, IMAGE, BML, and JDWS,
while laggards included: POL, PTC, APL, CPHL, and THCCL.
AKD Securities expects the market to improve on the back of
strengthening economic indicators. Additionally, easing inflationary pressures
would reduce probability of monetary tightening. Moreover, any positive
development on Middle East conflict could moderate international oil prices and
serve as a key trigger for market as it paves the way for monetary easing.
The 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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