The pressure was partially eased by supportive macro
developments: 1) budget surplus of PKR542 billion or 0.4% of GDP in 1HFY26 as
against a deficit of PKR1.5 trillion in the same period last year, 2) a 15%YoY
rise remittances sent by oversees Pakistanis to US$3.5 billion in first month
of current calendar year, and 3) auto sales reaching a 43-month high during the
outgoing month.
Moreover, in MSCI’s February 2026 Index review, ABOT was
deleted from FM Index. In addition, SEPL and ZAL were added to the MSCI FM
Small Cap Index, while LPL was removed.
Foreign exchange reserves held by State Bank of Pakistan (SBP)
increased by US$21 million to US$16.2 billion as of February 06, 2026. On the
currency front, PKR appreciated by 0.03%WoW against the greenback during the
week, closing the week at PKR279.62/ US$.
Other major news flow during the week includes, 1) UAE
extends US$2 billion lifeline to Pakistan ahead of IMF talks, 2) Moody’s
changes Pakistan banking outlook to stable, 3) US approves US$1.3 billion
financing for Reko Diq project, 4) Pakistan, Indonesia take fresh steps to
deepen trade and investment ties, and 5) GoP announces to invest US$1 billion
in AI by 2030.
Vanspati & Allied Industries, Inv. Banks/ Inv. Cos./ Securities
Cos., Pharmaceuticals, Chemical and Transport were amongst the top performing
sectors, while Textile Spinning, Oil & Gas Exploration, Jute, Synthetic
& Rayon and Technology & Communication were amongst the laggards.
Major buying was recorded by Mutual Funds and Individuals
with a net buy of US$29.6 million and US$13.0 million, respectively. Foreigners
and Brokers were major sellers with net sell of US$25.9 million and US$15.9 million,
respectively.
Top performing scrips of the week were: AGP, SSOM, ENGROH,
SCBPL, and CPHL, while laggards included: UNITY, PPL, PKGP, BOP, and TRG.
AKD Securities expects market to recover as domestic and
geopolitical uncertainties subside, and investor focus is likely to remain on
upcoming financial results and improving macros. It forecasts the bench mark
Index to reach 263,800 by end December 2026.
Investors’ sentiments are expected to improve on the
likelihood of foreign portfolio and direct investment flows, driven by improved
relations with the United States and Saudi Arabia.
Top picks of the brokerage house include: OGDC, PPL, UBL,
MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.
