Average daily trading volume declined by 9.4%WoW to 822 million
shares, from 907 million shares a week ago.
The week began with the Pakistan’s central bank maintaining
a status quo decision on Monday.
Several macroeconomic data points were released during the
week: for May 2025 current account deficit was reported at US$103 million and
net FDI inflow at US$194 million.
Auctions during the week witnessed a reduction in PIB
cut-off yields, while there was an increase in T-Bill cut-off yields.
Foreign exchange reserves held by State Bank of Pakistan rose
by US$46 million to US$11.7 billion as of June 06, 2025.
PKR depreciated by 0.26%WoW against the greenback.
Other major news flow during the week included: 1) LSM index
was up by 2.3%YoY in May, 2) IT exports surged to US$3.5 billion in 11MFY25, up
19%YoY, 3) Urea/DAP sales rose by 5%YoY and 135%YoY during May, 4) GoP launched
National Electric Vehicle Policy, and 5) Draft tariff policy for 2025-30 unveiled.
Woollen, Jute, Modarabas, Close-end mutual funds and
Transport were amongst the top performing sectors, while Power, Engineering,
Inv. Banks/ Inv. Cos/ Securities Cos, Glass & Ceramics, and Tobacco were the
laggards.
Major selling was recorded by Mutual Funds with a net sell
of US$9.9 million followed by Insurance companies with a net sell of US$3.4 million.
Individuals absorbed most of the selling with a net buy of US$15.6 million.
Top performing scrips of the week were: BNWM, YOUW, PABC,
HGFA, and EFUG, while laggards included: PKGP, MUGHAL, KTML, TRG, and FCEPL.
According to AKD Securities in the short term, market
performance would be influenced by the ongoing regional conflict between Iran
and Israel. However, the brokerage house expects the market to remain on
positive trajectory.
The forecast is based on 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.
