HBL Islamic Asset Allocation Fund

Pakistan's equity market closed October on a weaker note, with the benchmark KSE-100 Index declining by 3,861 points (2%) to settle at 161,631, thereby ending its five-month upward trend. The downturn was primarily driven by profit-taking from institutional and foreign investors amid heightened geopolitical tensions with Afghanistan, which weighed on investor sentiment despite strong corporate earnings and the successful IMF Staff-Level Agreement. The KSE-100's average daily volume during the month rose to 654.17mn shares, up from 542.05mn shares in previous month coupled with a surge in the average daily value traded rising by 3% to PKR 38.42bn from PKR 37.25 bn in September 2025. Foreign investors remained net sellers, offloading securities worth USD 25.94mn. On the domestic front, banks led the buying with net purchases of USD 238mn, followed by individuals and companies, which bought securities worth USD 70.85mn and USD 26mn, respectively. In contrast, mutual funds and insurance companies recorded net sales of USD 223mn and USD 62mn, respectively. Overall market sentiment remains cautiously positive, with momentum expected to continue in the coming months, supported by the anticipated IMF disbursement, currency stability, and shifting investor preference toward equities as fixed income and commodities underperform. However, geopolitical uncertainty and external risks may pose challenges.