On the macro front, the trade deficit widened by 56%YoY to
US$3.2 billion.
NCPI rose by 6.2%YoY during October 2025, which also weighed
on sentiment during the week. However, sentiment was upturned by positive data,
with remittances rising to US$3.4 billion, up 12%YoY and 7%MoM.
Noticeably, 1QFY26 fiscal accounts posted a record quarterly
surplus of PKR2.1 trillion (1.6% of GDP).
At PIB auction, State Bank of Pakistan (SBP) raised PKR489 billion
(target: PKR400 billion), with yields stable between 11.33% to 12.34% for the 2
and 15-year tenors.
Foreign exchange reserves held by SBP inched up by US$31 million
to US$14.5 billion, as of October 31, 2025. PKR appreciated by 0.03%WoW against
greenback.
According to AKD Securities, the momentum at PSX is expected
to 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 anticipated to further improve on
the likelihood of foreign portfolio and direct investment flows, driven by
improved relations with the United States and Saudi Arabia.
This outlook is supported by the lack of alternative
investment avenues and the attractive valuation of local equities, offering attractive
dividend yields.
Top picks of the brokerage house include: MEBL, MCB, HBL,
OGDC, PPL, PSO, FFC, ENGROH, LUCK, DGKC, FCCL, SYS and INDU.
