Market participation strengthened marginally during the week
by 3%WoW, with average daily trading volume to 1.40 billion shares, from 1.36 billion
shares a week ago. Foreign exchange reserves held by (SBP) increased by US$13 million
to US$16.1 billion as of Jan 23, 2026. PKR appreciated by 0.03%WoW against the
greenback during the week to close the week at 279.77 PKR/ a US$.
Other major news flow during the week included: 1) GoP has
set 5.1% GDP growth target for federal budget, 2) Brent crude nears six-month
high on Iran attack concerns, 3) SBP revises GDP growth upward up to 4.75% for
FY26, 4) IMF chief praises Pakistan’s reform push, and 5) Circular debt flow
declines to PKR75 billion in 1HFY26.
Property, Jute, Vanaspati & Allied Industries, and
Automobile Assembler were amongst the top performing sectors, while Fertilizer,
Chemical, Insurance, Paper & Board, and Textile Spinning were amongst the laggards.
Major buying was recorded by Individuals and Foreigners with
a net buy of US$25.7 million and US$17.8 million. Mutual Funds and Banks were the
major sellers with net sell of US$22.7 million and US$11.8 million
respectively.
Top performing scrips of the week were: JVDC, 2) SAZEW, KEL,
MTL, and PPL, while top laggards included: GADT, HCAR, FFC, AICL, and LCI.
AKD securities foresees the positive momentum at PSX to
continue on improving macros and continuous focus on reforms amid political
stability.
The brokerage house anticipates the benchmark 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.
Our top picks of the brokerage house include: OGDC, PPL,
UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.
