On the first trading day of the week, the benchmark KSE-100
index surged by 10,123 points— the highest single-day gain in point terms.
Investor confidence was further reinforced by the International Monetary Fund’s
approval and disbursement of US$1 billion tranche under the Extended Fund
Facility (EFF) and approval of an additional arrangement for the US$1.4 billion
under the Resilience and Sustainability Facility (RSF).
On the macroeconomic front, workers’ remittances were
reported at US$3.2 billion, resulting in a current account surplus of US$12 million
during April 2025. Alongside, Net FDI for the month was reported at US$141 million.
Foreign exchange reserves held by State Bank of Pakistan (SBP) increased by
US$71 million to US$10.4 billion.
Average daily trading volume was up by 34.8%WoW to 685 million
shares as compared to 508 million shares traded in the earlier week.
Other major news flow during the week included: 1) GoP proposed
to 10% tax cut for salaried class, 2) Pakistan and Russia consented to set up a
steel mill, 3) IFEM on petrol and diesel increased, 4) Prime Minister set up
panel for petroleum sector reforms, and 5) Pakistan and India talks in Saudi
Arabia to be scheduled shortly.
Vanaspati & Allied Industries, Transport, Refinery,
Woollen and Inv.Banks/ Inv.cos/ Securities.cos were amongst the top performers,
while Textile Spinning and Jute were amongst the worst performers.
Major selling was recorded by Banks/ DFIs with a net sell of
US$20.6 million. Mutual Funds absorbed most of the selling with a net buy of
US$39.2 million.
Top performing scrips of the week were: AGL, FCEP, PTC, ATRL
and SEARL, while laggards included: PKGP, IBFL, NESTLE, and PGLC.
According to AKD Securities, PSX is expected to remain
positive in the coming weeks, with the recent announcement of a ceasefire and
release of tranche by IMF likely to be key triggers. The KSE100 is anticipated
to sustain its upward trajectory, 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 pick of the brokerage house include: OGDC, PPL, PSO,
FFC, ENGROH, MEBL, MCB, HBL, LUCK, FCCL, INDU and SYS.
