Pakistan
Stock Exchange (PSX) remained volatile during the week ended on September 25,
2026. The benchmark Index gained 372 points or 0.22%WoW to close the week at
170,885 points.
Yemeni
Houthi attacks on Saudi Arabia's East-West Pipeline forced the closure of a key
export route, pushing Brent crude to a 4-month high of US$109.7/bbl. However,
oil prices eased during the final two days.
The index
recovered on fading concerns over immediate Saudi supply disruptions, outweighing
fears of a broader Middle East conflict.
The State
Bank of Pakistan (SBP) kept the policy rate unchanged at 11.50% on Monday, in
line with broad market consensus.
The current
account deficit narrowed sharply by 70%YoY to US$98 million in August 2926.
Foreign
exchange reserves held by SBP hit a record high of US$21.4 billion, pushing the
country's import cover past three months for the first time in 5-Years.
Furthermore,
yields on 3 and 6-month T-Bills declined in the last auction.
FDI
increased by 80%YoY to US$316 billion during August 2026.
Auto
industry sales increased by 11%YoY to 17,485 units in August 2026.
IT exports
rose 17%YoY to US$394 million.
Other major
news flow during the week included: 1) GoP presents IMF plan to retire PkR3.6tn
gas-sector circular debt, 2) Pakistan eyes to seek an expansion of its 30-billion-yuan
swap line with China, 3) Pakistan cotton arrivals rises by 19%YoY to 2.4 million
bales as of September 3026, 4) Auto financing in August 2026 reached record
high of PKR393 billion, and 5) GoP approves PKR75 billion subsidy for fuel
relief scheme.
Leading sectors
were: Synthetic and Rayon, Leasing Companies, and Real Estate Investment Trust,
while laggards included: Textile Weaving, Paper and Board, and Leathers and
Tanneries.
Major buyers
were Individuals (US$11.0 million) and Banks (US$2.6 million). On the contrary,
major selling was recorded by Mutual Funds (US$12.7 million) and Foreigners (US$3.4
million).
Top
performing scrips were: PSEL, IBFL, and CPHL. On the other side, laggards
included: GHNI, GAL, and NBP.
Pakistan’s
leading brokerage house, AKD Securities expects the market to improve on the
back of strengthening economic indicators, with the upcoming IMF review in the
next week to remain a key near-term catalyst. A potential US-Iran deal could
moderate international oil prices from current elevated levels.
The market
continues to trade at attractive valuations. The brokerage house forecasts the
benchmark Index to reach 263,800 by end December 2026.
Our top
picks of the brokerage include OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO,
LUCK, FCCL, INDU, ILP and SYS.
