The benchmark Index declined by 4,045 points or 2.4%WoW to
close at 162,375 on Friday, October 23, 2026. Average daily trading volume
declined by 13.4%WoW to 496 million shares.
Brent crude futures climbed by 6.4%WoW to US$114.9/ bbl as
of Friday. Meanwhile, local HSD and Petrol prices declined attributed to a
decline in refinery crack cap by authorities and relatively stable Dubai crude
oil prices.
On the macroeconomic front, FY26 GDP growth revised slightly
down to 3.65% from provisional estimates of 3.7% as compared to 3.1% in FY25.
The World Bank projected FY27 GDP growth at 3.8% and
inflation at 8.2% (7.1% in FY26).
Foreign exchange reserves held by State Bank of Pakistan
(SBP) increased to US$21.49 billion as of October 16, 2026.
Banking sector deposits rose 16%YoY to PKR40.8 trillion at
end September 2026.
Consumer auto financing increased 33.6%YoY to PKR407 billion
in September 2026 (up for the 22nd consecutive month).
Urea offtakes rose 42%YoY to 611,000 tons in September 2026
amid channel inventory build-up ahead of the Rabi season, whereas DAP offtakes
declined 30%YoY to 68,000 tons amid higher local prices.
Power generation grew 6%YoY in 1QFY27 amid recovery in electricity
consumption.
Cotton arrivals increased 8%YoY to 4.1 million bales as of
October 15, 2026.
Other major news flow during the week included: 1) Finance
Minister sought Fitch’s view on what Pakistan needs to move into the BB rating
category, 2) Prime Minister approved the draft of Auto Policy for five years,
3) Weekly SPI rose 0.65%WoW and 11.85%YoY, 4) Privatization Commission
pre-qualified 10 bidders for IESCO, and 5) Power sector circular debt rose to
PKR1.7 trillion, while gas sector liabilities increased to PKR3.6 trillion as
of Jun 30, 2026.
Top performing sectors were: Modarabas, Sugar & Allied
Industries, and Leasing Companies, while laggards included: Refinery,
Technology and Communication, and Woolen.
Major net selling was recorded by Mutual Funds (US$10.2
million) and foreigners (US$5.7 million), while major buyers were Individuals (US$14.0
million.
Top performing scrips were: THCCL, UPFL, PSEL, TPLRF1, and
BWCL, while laggards included: PTC, PGLC, AHCL, ATRL, and KAPCO.
AKD Securities expects the market to improve on the back of
strengthening economic indicators.
The brokerage house expected upcoming MPC meeting as a major
catalyst and predicts the central bank to maintain the status quo.
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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