The daily average traded volume increased by 37.3%WoW to 907
million shares, up from 660 million shares in the earlier week.
Workers’ remittances were reported at US$3.7 billion for the
month of May 20225.
Auto sales for May 2025 rose to 16,941 units, up 19%YoY,
driven by higher Passenger Cars and LCVs sales.
Foreign exchange reserves held by State Bank of Pakistan
(SBP) increased by US$167 million, ending the week at US$11.7 billion as of Jun 06,
2025.
PKR depreciated by 0.28%WoW against the greenback.
Major news flow during the week included: 1) Federal Budget
FY26 targets 4.2% real GDP growth, 2) current account deficit projects US$2.1 billion,
3) carbon levy imposed on POL products, 4) tax rate cuts for salaried class,
and 5) Pakistan secures US$700 million loan for Reko Diq project.
Woollen, Textile Spinning, Textile Weaving, Glass &
Ceramics and Modarabas were amongst the top performing sectors, while Refinery,
Vanaspati & Allied Industries, Technologies & Communication, Transport,
and Cable & Electrical Goods were the laggards.
Major selling was recorded by Foreigners with a net sell of
US$7.4 million, Banks/ DFI absorbed most of the selling with a net buy of
US$8.0 million.
Top performing scrips of the week were: PKGP, BNWM, GHGL,
KTML, and MLCF, while top laggards included: POML, FCEPL, KEL, CNERGY, and
HUMNL.
According to Pakistan’s largest brokerage house, AKD
Securities, the market is expected to remain positive in the coming weeks, with
federal budget being broadly positive or neutral across most sectors, along
with room for rate cut during CY25.
The benchmark index is anticipated to sustain its 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, MEBL, MCB, HBL, LUCK, FCCL, INDU, and SYS.
