ABL Stock Fund

ABL-SF increased by 13.34% in Sept'25 against 11.36% increase in the benchmark, reflecting an outperfromance of 198 basis points. In Sep'25, the KSE-100 index closed at 165,494 points, gaining 11.4% MoM (+16,876 points), with average traded value up 19.5% MoM to USD 132mn and average volumes surging 77.66% MoM to 542Mn shares. Net FIPI outflow stood at USD 57.31Mn; however, on the domestic side, mutual funds and individuals were net buyers of USD 87Mn and USD 34Mn respectively, while banks/DFIs and NBFCs posted net selling of USD 48Mn and USD 9Mn. Key market triggers during the month included the arrival of the IMF mission for the 2nd EFF review, with discussions expected to focus on lowering the tax collection target, the signing of a 'Strategic Mutual Defence Agreement' between Pakistan and Saudi Arabia, and the formal launch of CPEC Phase-Il aimed at driving structural economic changes. On the downside, severe monsoon floods devastated 2.5Mn acres of agricultural land, likely leading to downward GDP revisions, while the federal government was anticipated to announce a mini-budget to raise at least PKR 50Bn for post-flood rehabilitation. Other notable developments included the signing of a PKR 1.2Trn financing agreement to settle power sector circular debt, NCPI inflation at 3.0% YoY in Aug'25 with Sep'25 rising to 5.6% YoY, a 2MFY26 current account deficit of USD 624Mn amid rising imports and normalizing remittances that widened the trade deficit to USD 5.1Bn, FBR's tax collection shortfall of PKR 64Bn in the first two months of FY26, and the government's decision to allow the import of 5-year-old used cars.