Market Wrap: Highlights of the day June 26, 2025 - By JS Research

Jun 26 2025

JS Global Capital

• The market opened on a positive note, touching an intraday high of 123,417 early in the session. However, broad-based profit-taking set in after two strong bullish days, which dragged the index into the red. Notably, the KSE-100 Index closed down by 715 points at 122,046. Total traded volume stood at 758mn shares, with top activity in PIBTL, WTL, PASL, SSGC and KEL. The recent rally was driven by strong buying in cement, banking, and fertilizer sectors. Near-term outlook remains positive, and dips may offer attractive entry opportunities.

Market Wrap: Correction Kicks In: KSE-100 Sheds 715 Points on Profit-Taking - By HMFS Research

Jun 26 2025

HMFS Research

• The market witnessed a volatile trading session, opening on a positive note amid early optimism. However, sentiment shifted in the latter half as the PSX reversed course, driven by profit-taking activity. Investors opted to book gains following the recent rally that had pushed the index to its peak in the wake of the Israel-Iran ceasefire. Moreover, given the strength of this week’s bullish rally, a market correction appeared not only likely but well-justified in retrospect. The benchmark KSE-100 Index concluded the session at 122,046, marking a decline of 715 points or 0.58%. The downward trajectory was primarily driven by selling pressure in the banking sector, which emerged as the leading drag on overall index performance. Volume also reflected the frenzy, with 244mn shares changing hands on the KSE-100 Index and 751mn on the broader All-Share Index. Top volume leaders included PIBTL (38mn), WTL (33mn), and PASL (33mn). Going forward, the market is expected to remain range-bound with a bias toward selling pressure, as investors look to book profits—particularly amid month-end rollover activity. However, we advise investors to capitalize on market dips and adopt a wait-and-watch approach until a more favorable entry point emerges. Focus should remain on fundamentally strong stocks with long-term growth potential.

Market Wrap: The benchmark index closed on a negative note - By IIS Research

Jun 26 2025

Ismail Iqbal Securities

• The benchmark index closed on a negative note, gradually shedding points throughout the session as profit taking set in. Added pressure from rollover week volatility kept investor sentiment cautious, leading to a subdued close. Trading volumes increased to 244mn shares today as compared to 221mn shares in the previous session. Today, the KSE-100 index lost 715 points to close at 122,046 level, down by -0.58% DoD. Commercial Banks, Cement, and Technology & Communication sectors were the major laggards in today's session, cumulatively shedding 680 points from the index.                                                                                     

Market Wrap: Market round up Jun 26 2025 - By Pearl Research

Jun 26 2025

• The benchmark KSE-100 index concluded today’s trading session in the negative territory as profit-taking prevailed amid the ongoing rollover week pressures. Consequently, the benchmark KSE-100 recorded an intraday high of 123,418(+656pts) to close at a 122,046(-715pts) level. The all-share volume marginally increased to 759mn compared to 750mn shares traded (+1.2% DoD) the previous trading day. Volume leaders included PIBTL (38mn), WTL (33mn), SSGC (33mn), PASL (32mn), and KEL (25mn). Going forward, we expect the benchmark KSE-100 index to move both ways, and we suggest investors adopt the “Buy on Dip” strategy in the upcoming sessions.

Al-Ghazi Tractors Ltd. (AGTL): CY24 and 1QCY25 Analyst Briefing Takeaways - By AKD Research

Jun 26 2025

AKD Securities

• Al-Ghazi Tractors Ltd. (AGTL) held its analyst briefing today to discuss CY24/1QCY25 results and future outlook of the company. Following are the key highlights:

• Company posted earnings of PkR3.5bn (EPS: PkR61.1) in CY24, compared to PkR2.6bn (EPS: PkR45.1) in CY23. The said increase was primarily attributable to improved gross margins to 24% during the period compared to 19% during SPLY.

• Moreover, operating expenses saw a 50%YoY increase in CY24 following the company's transition from its old ERP system to SAP S/4HANA, as well due to free deliveries for tractors sold in Punjab’s Green Tractor Scheme.

Economy: Inflation to moderate further in FY26 - By AKD Research

Jun 26 2025

AKD Securities

• Continued tight monetary and fiscal policies amid stable currency are expected to moderate inflation further in FY26.

• We expect inflation to remain at 4.4% in FY26, broadly in line with estimation for FY25, driven by a modest increase in the heavily weighted Food and Housing indices amid subdued Int’l commodity prices.

• Rupee is expected to remain stable due to improved external account position driven by elevated remittances and rising exports aided by structural reforms.

Economy: Pakistan-US Trade Talks Near Conclusion: Major Breakthrough on Tariffs Expected Next Week - By AHCML Research

Jun 26 2025

Al Habib Capital Markets

• Pakistan and the United States are set to conclude trade negotiations next week, aiming to address reciprocal tariffs and strengthen bilateral economic ties. The talks, led by Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick, reflect a strategic push to reset relations amid evolving global alignments. A key focus is easing the 29% US tariff on Pakistani exports, imposed under former President Trump, as Pakistan posted a USD3 billion trade surplus with the US in 2024.To rebalance trade and attract US goodwill, Pakistan has offered to increase imports of American goods, including crude oil, and provide investment incentives, particularly in the mining sector.

• A joint webinar this week showcased Pakistan’s USD7 billion Reko Diq copper-gold project, drawing interest from US investors and officials. The US Export-Import Bank is currently evaluating financing proposals worth USD500mn to USD1 billion for the project.

• As the U.S. maintains high tariffs on key textile-exporting countries like China, Vietnam, and Cambodia, Pakistan faces relatively moderate tariffs, higher than Egypt and Turkey, but far more favorable than many others. This creates a strategic opening for Pakistan to increase its market share in the U.S., particularly in high-demand categories where it already has a foothold. These include cotton trousers, knit shirts, denim, towels, bed linen, and curtains.

Attock Cement Pakistan Ltd. (ACPL): Potential Acquisition of Attock Cement Sponsor Exploring Exit Options - By IIS Research

Jun 26 2025

Ismail Iqbal Securities

• Pharaon Investment Group Limited (PIGL), the majority shareholder of Attock Cement Pakistan Ltd. (ACPL), is evaluating strategic options for its investment in the company, including a potential sale. This process was initially disclosed in December 2024 and reaffirmed in May 2025. Following this, ACPL has received Public Announcements of Intention from multiple parties to acquire up to 115.5mn shares, representing 84.06% of the company’s paid-up capital, subject to regulatory approvals. While the process is ongoing, formal interest has been disclosed by three distinct sets of acquirers.

• Attock Cement Pakistan Ltd. (ACPL), located in Hub, Baluchistan, is the second largest cement producer in the South region with an installed capacity of 4.3mn tons. A major 1.3mn ton brownfield expansion, completed in April 2024 at a cost of US$100mn, raised its market share in the South from 18% to 24%. Its coastal location provides logistical advantages for exports and proximity to regional infrastructure and mining developments, including those under CPEC and around the Reko Diq site.

• ACPL has focused on improving energy efficiency through captive generation. Its total installed capacity now stands at 61.8MW, comprising WHR, solar, coal-fired boiler, and a wind turbine commissioned in March 2025. This shift has reduced reliance on the national grid to 10% and cut power costs by around 35%. While South accounts for a smaller share of domestic cement demand in Pakistan, the region remains dominant in exports. ACPL expects its export volumes to grow further, supported by competitive clinker pricing and increased shipments to markets like Bangladesh and Sri Lanka.

Barkat Frisian Agro Limited (BFAGRO): Egging on growth with zero competition – Buy - By JS Research

Jun 26 2025

JS Global Capital

• We initiate coverage on Barkat Frisian Agro Limited (BFAGRO), Pakistan’s first and only pasteurized egg producer, with a Buy rating and a Target Price (TP) of Rs50, offering an attractive ~47% upside from current levels. Our investment case is anchored in the company's first-mover advantage, robust demand outlook, strategic international backing, and scalable business model.

• Rapid growth trajectory with structural demand drivers owing to Pakistan’s growing young urban population and rising demand for convenient confectionary products. As the only pasteurized egg supplier in the country, BFAGRO benefits from a significant first-mover advantage.

• Robust 5yr revenue CAGR of 22% led by strong demand growth, favorable pricing outlook and ongoing expansion.

Morning News: All cut-motions rejected: NA approves PKR 3.951trn demands for grants - By Alpha - Akseer Research

Jun 26 2025

Alpha Capital

• Ahead of the passage of the 2025-26 federal budget on Thursday (June 26), the National Assembly on Wednesday approved PKR 3.951 trn demands for grants pertaining to ministries for finance, human rights, interior and national food security, to meet the expenditures during financial year ending June 30, 2026, by rejecting all cut-motions moved by opposition lawmakers.

• In a major development, the bank account of any unregistered sales tax person (tax evader) can only be initially suspended for a period of three days from July 1, 2025.

• The National Tariff Commission (NTC) has imposed anti-dumping duties of up to 21% on imports of polystyrene from China, a move that has placed importers in a difficult position.