Islamabad April 27 2025: KSE100 index remained volatile throughout the week, as escalating geopolitical tensions post the Pahalgam attack in Indian Occupied Kashmir and India’s subsequent threat to revoke the Indus Water Treaty with Pakistan in the aftermath of the incident further undermined investor sentiment, states AKD Securities in its report.
The KSE-100 index closed the week at 115,469 points, marking a decline of 1,846 points (down 1.57%WoW).
On the currency front, PkR depreciated 0.09%WoW against the greenback throughout the week, closing the week at 280.97. Moreover, SBP held FX reserves decreased by US$367mn WoW, ending the week at US$10.2bn as of Apr 18th.
Sector-wise, Vanaspati & Allied Industries, Synthetic & Rayon, and Textile Spinning were amongst the top performers, up 13.4%/2.2%/2.1%WoW, respectively. On the other hand, Refinery, Jute, and Transport were amongst the worst performers with a decline of 7.8%/7.2%/6.0%WoW. Company-wise, top performers during the week were, i) NATF (up 13.4%WoW), ii) FCEPL (up 9.3%WoW), iii) MUREB (up 7.7%WoW), iv) ATLH (up 7.5%WoW), and v) SNGP (up 7.2%WoW), while top laggards were, i) BOP (down 13.1%WoW), ii) PIBTL (down 11.7%WoW), iii) EPCL (down 11.2%WoW), iv) AGL (down 9.0%WoW), and v) HUMNL (down 8.8%WoW).
Flow wise, major net selling was recorded by Banks/DFI with a net sell of US$4.0mn. On the other hand, Other Organizations and Foreigners absorbed most of the selling with a net buy of US$4.8/2.1mn, respectively.
AKD Securities feels that lower oil prices and favorable standing among exporting peers amid reciprocal tariffs would support the economy and strengthen our outlook for a return to single-digit interest rates in CY25. The KSE-100 is anticipated to sustain its upward trajectory, with a target of 165,215 points by Dec’25, 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. AKD Securities top pick includes, OGDC, PPL, PSO, FFC, ENGROH, MEBL, MCB, HBL, FCCL, INDU, ILP and SYS.
