On the macroeconomic front, inflation for September 2025 was
recorded at 5.6%YoY, marking the highest level in the past 10 months, given the
recent flooding. In anticipation, yields on tenors of T-Bills in the last
auction increased, reflecting investor expectations that the policy rate will
remain unchanged in the near term.
Trade deficit for September 2025 increased to US$3.3 billion,
from a deficit of US$2.3 billion during the same period last year.
Cement sector, offtakes for September 2025 was recorded at
4.25 million tons, up 7% YoY, given 14%YoY surge in domestic sales.
Offtakes of OMCs during September 2025 was registered at 1.4
million tons, up by 8%YoY.
Other major news flow during the week included: 1) Prime Minister
solicited US investment in meeting with President Trump, 2) Trade with Central
Asia, Kabul surges to US$2.4 billion, 3) Petroleum Division to discuss GST
waiver for petroleum products with IMF, 4) Pakistan-IMF talks on US$ 7billion
EFF and RSF reviews begins, and 5) FBR notifies 40% regulatory duty on import
of used cars.
Commercial Banks, Fertilizer, Refinery, Vanaspati &
Allied Industries and Transport were amongst the top performers, while
Modarabas, Jute, Textile Spinning, Close-end Mutual Funds and Textile Composite
were amongst the laggards.
Major buying was recorded by Mutual Funds and Individuals
with a net buy of US$82.2 million, while Insurance, Companies and Banks/DFIs
remained the highest seller, with a net sell of US$71.4 million.
Top performing scrips of the week were: BOP, SAZEW, FABL,
YOUW and FATIMA, while laggards included: HUMNL, NPL, RMPL, MTL, and PIOC.
AKD Securities foresees the momentum in the benchmark index
to continue given smooth completion of IMF 2nd 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.
Top picks of the brokerage house include: OGDC, PPL, PSO,
FFC, ENGROH, MCB, LUCK, DGKC, FCCL, INDU, and SYS.
