Market participation grew by 43.4%WoW with average daily
traded volume rising to 1.8 billion shares, from 1.3 billion shares a week ago,
marking second highest average weekly traded volume till date.
State Bank of Pakistan (SBP) left policy rate unchanged at
11% at Monday’s Monetary Policy Committee (MPC) meeting, taking cautious
approach given recent floods.
Current Account Deficit (CAD) for August 2025 widened to
US$245 million from US$82 million for the same period last year.
IT exports rose to US$337 million, up 13%YoY, but FDI
declined by 43%YoY to US$156 million.
Power sector generation for August 2025 was reported at
14,218GWh, up 8%YoY, with the cost of generation declining by 18%YoY, offering
some relief on the energy front.
Other major news flow during the week included: 1)
Pakistan’s dollar bonds jump to four year high, 2) IMF to be convinced to slash
FBR’s envisaged target, 3) Shehbaz-Trump meeting likely on September 25, 2025,
4) Pak, Turkiye to boost ICT cooperation, and 5) Pak-Iran trade reaches US$3 billion.
Property, Technology & Communication, Closed-end Mutual
funds, Modarbas and Refinery were amongst the top performing sectors, while Vanaspati
& Allied Industries, Leasing Companies, Textile Spinning, Miscellaneous and
Engineering were the laggards.
Major selling was recorded by Foreigners with a net sell of
US$20.8 million. Mutual Funds and Insurance Companies absorbed most of the
selling with a net buy of US$24.0 million.
Top performing scrips of the week were: BOP, TRG, CNERGY,
YOUW, and PIBTL, while laggards included: PKGP, ISL, KAPCO, and MEHT.
According to AKD Securities, PSX is expected to remain
positive in the coming weeks, with the upcoming IMF review and any developments
over circular debt remaining in the limelight.
The benchmark index is anticipated to sustain its upward
trajectory, with a target of 165,215 points by end December 2025, 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, LUCK, DGKC, FCCL, INDU, and SYS.
