Pakistan
secured a staff-level agreement with IMF in its second review for the US$7 billion
Extended Fund Facility program and first review of Resilience and
Sustainability Facility. The benchmark index gained 708 points during the week,
witnessing it’s second highest single-day gain of 7,033 points on Tuesday, up
0.4%WoW, to close at 163,806 level.
Market
participation strengthened by 36%WoW with average daily traded volume reported
at 2.2 billion shares, as compared to 1.6 billion shares a week ago.
On the
macroeconomic front, petroleum imports for September 2025 were reported at
US$1.2 billion, down 11%YoY.
Textiles and
clothing exports for September 2025 were recorded at US$1.6 billion, down
2%YoY.
Roshan
Digital Accounts inflows for September 2025 were recorded at US$196 million, up
17%YoY
LSM output
increased by 0.5%YoY during August 2025.
Foreign
exchange reserves held by State Bank of Pakistan (SBP) increased by US$21 million
to US$14.4 billion as of October 10, 2025.
Other major
news flow during the week included: 1) Pakistan and Saudi Arabia agreed to explore
new trade, investment avenues, 2) Shehbaz and COAS to visit Saudi Arabia from
October 26, 3) Pakistan and Vietnam begin PTA talks to expand trade,
investment, 4) Nepra gives the go-ahead to effect CTBCM, and 5) Petrol and
diesel prices slashed.
Vanaspati
& Allied Industries, Commercial Banks, INV.Banks/ INV.Cos/ Securities Cos,
Power Generation & Distribution and Paper & Board were amongst the top
performing sectors, while Close-end Mutual Funds, Leasing Companies, Modarabas,
Textile Weaving and Leather & Tanneries were amongst the laggards.
Major
selling was recorded by Mutual Funds and Insurance aggregating to US$36.5
million, which was mostly absorbed by Companies recording net buy of US$30.3 million.
Top performing
scrips of the week were: PSEL, BOP, SSOM, PSX, and LOTCHEM, while laggards included:
GADT, PKGP, PABC, and JVDC.
According to
AKD Securities, believes the bullish momentum o continue given successful
staff-level agreement of the IMF’s second review, minimal flood impact and
improved credit ratings by global agencies amid falling fixed income yields.
Investors’
sentiments are expected to further improve on the likelihood of foreign
portfolio and direct investment flows, driven by improved relations with the US
and Saudi Arabia.
The outlook
is supported by the lack of alternative investment avenues and the attractive
valuation of local equities, offering attractive dividend yield.
Top picks of
the brokerage house include: MEBL, MCB, HBL, OGDC, PPL, PSO, FFC, ENGROH, LUCK,
DGKC, FCCL, and INDU.
