Positive sentiments were reinforced by workers’ remittances
rising to US$3.4 billion in June 2025, up 8%YoY, taking FY25 inflows to US$38.3
billion, up 27%YoY.
Foreign exchange reserves held by State Bank of Pakistan
(SBP) were reported at US$14.5 billion as of July 04, 2025. Despite that PKR
witnesses slight depreciation.
However, market participation declined, with average daily
traded volumes falling by 2.0%WoW to 948 million shares, down from 967 million
shares in the earlier week.
The GoP raised PKR1.4 trillion from T-Bills auction.
Auto sales for June 2025 were recorded at 25,305 units, up
43%YoY, driven by higher Passenger Cars and LCVs sales, mainly due to pre
buying ahead of the proposed GST hike on vehicles up to 850cc from 12.5% to
18%.
The government utilized a total of PKR1,045 billion, out of
the budgeted allocation of PKR1,100 billion, for development projects during
FY25.
Other major news flow during the week included: 1) Pakistan
retires PKR500 billion SBP debt early, 2) GoP raises PKR208 billion from PIBs
auction, 3) Textile exports rose by 7.22%YoY in FY25, 4) Pakistan and Russia
discuss steel mill revival, and 5) Nepra announced negative FCA of PKR4.03/kwh
for KE consumers.
Woollen, Jute, Textile spinning, Textile composite, and
Modaraba, were amongst the top performing sectors, while ETFs, Technology &
Communication, Close-end Mutual Funds, Oil & Gas Exploration, and Refinery were
amongst the laggards.
Major buying of US$19.2 million and US$14.1 million was
recorded by Mutual Funds and Individuals, respectively. Companies and Banks
were the sellers during the week, with a net sell of US$8.9 million and US$8.7 million,
respectively.
Top performing scrips of the week were: 1) BNWM, MEHT, GADT,
KTML, and KOHC, while laggards included: PSEL, AIRLINK, PKGP, BAHL, and EFERT.
According to AKD Securities, PSX is likely to maintain a
positive trend in the coming weeks, driven by the expectations of strong
corporate earnings.
The index is anticipated to remain on upward trajectory, primarily
driven by strong earnings in Fertilizers, sustained ROEs in Banks, and
improving cash flows of E&Ps and OMCs, benefiting from falling interest rates
and economic stability.
Top picks of the brokerage house include: OGDC, PPL, PSO,
FFC, ENGROH, MCB, HBL, KOHC, FCCL, INDU, and SYS.
