Morning News: JPMorgan plans frontier bond index – By HMFS Research

Feb 4 2026


HMFS Research


  • JPMorgan is finalizing plans for a new index to track frontier market local currency bonds, investors consulted on the details told Reuters, as the bank looks to satisfy a growing appetite for riskier and more diversified high-yield debt. The move, which comes 15 years after the Wall Street bank launched its hard-currency Next Generation Markets Index (NEXGEM) frontier index, coincides with the year-long slump in the dollar and some extraordinary recent rallies in markets like Argentina, Ecuador and Uganda.
  • JPMorgan declined to comment on the plans. Six leading money managers who spoke to Reuters on condition of anonymity said the bank’s engagements with them reached an advanced stage in the second half of last year. The proposed index includes 20 to 25 countries, with Egypt, Vietnam, Kenya, Morocco, Kazakhstan, Pakistan, Nigeria, Sri Lanka and Bangladesh having the largest “weightings”, three of the managers said.
MCB Bank Limited (MCB): Earnings soften amid margin compression and normalization of non-core income – By HMFS Research

Feb 4 2026


HMFS Research


  • MCB Bank Limited (MCB) has announced its consolidated results for the year ended December 31, 2025, reporting profit after tax of PKR 58.8bn, translating into EPS of PKR 49.29 (in line with our expectations), down ~7.6% Y/Y compared to PKR 63.5bn (EPS: PKR 53.35) in CY24. The earnings decline largely reflects pressure on net interest income, higher operating costs, and normalization in non-markup income, partially offset by lower provisioning charges. On the payout front, MCB gave PKR 36/ per share as dividend with PKR 9 distributed in its final quarter (also in line with HMFS expectations).
  • Net markup/interest income declined ~4% Y/Y to PKR 161.2bn, primarily due to, a sharp rise in interest expense (~32% Y/Y). Non-markup income rose trivially by ~0.4% Y/Y to PKR 41.4bn Aided by improved FX income (~13% Y/Y), sharp increase in Dividend income (~52% Y/Y), and Income from derivates (~3x Y/Y).
Pakistan Market Wrap: Bullish Momentum Holds Firm – By HMFS Research

Feb 4 2026


HMFS Research


  • The KSE-100 Index maintained its bullish trajectory during today’s trading session, supported by strengthening economic indicators, optimism surrounding the potential inclusion of Pakistani equities in the JP Morgan Frontier Markets Index, expanding export volumes to China, and improving bilateral trade relations with key partner economies. The positive sentiment kept investor participation buoyant, enabling the benchmark to close at 187,832, marking a gain of 931 points from the previous session.
  • Trading activity remained robust, with 768mn shares exchanged on the KSE-100 Index and 1.19bn shares traded across the broader market. KEL (591mn shares) emerged as the top volume leader, followed by WAVESAPP (36mn shares) and FNEL (33mn shares). Market momentum is expected to remain constructive, supported by the ongoing corporate results season as investors recalibrate portfolios in response to earnings announcements. While elevated valuations may trigger intermittent profit-taking spells, the overall market outlook remains favourable. Investors are advised to remain vigilant, closely monitor evolving developments, and focus on fundamentally strong stocks offering sustainable long-term growth potential.
Pakistan Market Wrap: Evening Chronicle – By AHCML Research

Feb 4 2026


Al Habib Capital Markets


  • The benchmark KSE-100 Index continued its upward momentum, surging to an intraday high of 188,312 before settling at a new all-time high of 187,832, registering a gain of 931 points (0.50%). Gains were driven by broad-based buying, led by Commercial Banks with selective strength in Power Generation & Distribution.
  • On the macro front, Pakistan and Kazakhstan signed 36 agreements and MoUs across multiple sectors, including petroleum, mining, and maritime affairs, with the Prime Minister reiterating the $1bn bilateral trade target. In terms of index contribution, MEBL, ENGROH, NBP, UBL, & HMB, emerged as key drivers, collectively adding 739.61 to the benchmark. On the volumes front, KEL led activity with 590.87 million shares; while overall market turnover stood at 1,193.66 million shares, reflecting healthy participation.
Engro Powergen Qadirpur Limited (EPQL): 4QCY25 Result Review – By Taurus Research

Feb 4 2026


Taurus Securities


  • Board Meeting: February 04, 2026.
  • 4QCY25 LPS: PKR 0.05; DPS: PKR 1.25; LAT: PKR 15Mn, down 1.0xYoY over the SPLY – below expectations.
  • EPQL’s net sales clocked-in at PKR 3.2Bn in 4QCY25, down 4%QoQ due to lower plant utilization. Gross margins hovered at 6%, down 8pptsQoQ on account of increase in fuel cost component. Moreover, CY25 sales dropped 10%YoY on the back of major scheduled outage in 2025 and reduction in capacity payments due to implementation of hybrid take & pay model. CY25 PAT down 61%YoY due to PPA revisions in addition to lower utilization level. On a sequential basis, EPQL posted a LAT of PKR 15Mn (LPS of PKR 0.05) as a lower topline has wiped out the earnings during the quarter. Lastly, the Company announced a final cash dividend of PKR 1.25 for the quarter, taking the total payout to PKR 11.75 for the year.
MCB Bank Limited (MCB): 4QCY25 EPS clocked in at PKR11.9 – By Insight Research

Feb 4 2026


Insight Securities


  • MCB has announced its 4QCY25 result, wherein it has posted MCB (PKRmn) 4QCY25 4QCY24 3QCY25 YoY QoQ CY25 CY24 YoY consolidated PAT of PKR30.2bn (EPS: PKR11.9) vs. PAT of PKR27.2bn (EPS: PKR8.9) in SPLY. The result came inline with our expectations.
  • Net interest income recorded an increase of 4% YoY, while it remained flat on QoQ basis.
Pakistan Cement: South exports amplified industry utilization – By Foundation Research

Feb 4 2026


Foundation Securities


  • Cement sector dispatches rose by 12.4% YoY in Jan’26 to 4.5Mn tons, resulting in enhanced capacity utilization of 60.7% vs. 55.6% in the SPLY. Despite peak winter season, local sales continued their growth momentum exhibiting a jump of 4.2% YoY to 3.6Mn tons, portraying demand recovery trend amid improved macros. Similarly, exports spiked to 0.9Mn tons with a remarkable growth of 61.1% YoY. Resurgence in exports were on account of low base effect from South exports, even in the absence of North exports due to Afghan border closure and also compensating for weakness in domestic demand in the South region.
  • Seasonality witnessed on a MoM bases where local demand fell by 3.4% given fewer day light hours, fog etc. This decline was driven by North sales exhibiting a decline of 6.5% MoM which was compensated by uptick in South sales of 13.8% MoM. However, exports in North region were significantly impacted owing to Afghan border closure. Increase in both local dispatches and exports of South region MoM resulted in overall industry dispatches reaching 4.5Mn tons, maintaining growth of 4.4% MoM.
Interloop Limited (ILP): Earnings Beat Expectations on Higher Other Income – By IIS Research

Feb 4 2026


Ismail Iqbal Securities


  • ILP reported an unconsolidated EPS of PKR 2.47 for 2QFY26, up 3x YoY and 24% QoQ, materially above our expectation of PKR 1.9. The earnings surprise was largely driven by higher than expected other income, which we believe likely stems from derivative financial instruments, similar to last quarter, where other income of PKR 700mn was primarily attributable to FX derivative gains on forward dollar bookings. However, detailed account is awaited. The results were accompanied by a cash dividend of PKR 2.00 per share, which was above consensus expectations and likely reflects an improved cash position.
  • Net sales clocked in at PKR 43.6bn, up 3% YoY but flat QoQ. Cost discipline remained evident as cost of sales declined 2% YoY, leading to an improvement in gross margins to 24% versus 23% in the previous quarter and 20% in 2QFY25. This margin expansion reflects better pricing, product mix, and input cost management.
Interloop Limited (ILP): Strong Earnings Beat and Enhanced Shareholder Returns – By HMFS Research

Feb 4 2026


HMFS Research


  • Interloop Limited reported earnings well above HMFS expectations of PKR 1.9/share, delivering an EPS of PKR 2.47, marking an impressive 201% year-on-year growth. The company also declared a dividend of PKR 2/share, reinforcing shareholder value.
  • Revenue increased modestly by 3%, while gross profit expanded by 22%, supported by stable cost of sales. Operating and selling expenses declined, further strengthening operational efficiency.
Pakistan Cement: Jan’26 dispatches up 4%MoM – By Taurus Research

Feb 4 2026


Taurus Securities


  • Total cement dispatches in Jan’26 went up 4%MoM to 4.54Mn tons i.e. domestic sales down 3%MoM while exports were up significantly by 51%MoM. Decrease in domestic sales was at tributed to lower construction demand amid winter effect, also a resultant effect of higher construction material cost, duties and taxes—cement manufacturers have requested the Government to give concessions on duties and taxes by framing an industry-friendly policy in order to support construction activities, making cement viable domestically as well as for exports. Further, North players are concerned as exports were Nil for the third consecutive month due to the border closure with Afghanistan, searching for alternative destinations like Sri Lanka and Bangladesh via the Sea route.
Oil Marketing Companies: Jan’26 Volumes up 10%YoY and 12%MoM – By Taurus Research

Feb 4 2026


Taurus Securities


  • Petroleum products off-take for Jan’26 stood at ~1.5Mn tons, reflecting an increase of 12%MoM and 10%YoY respectively. MS volumes increased 2%MoM and 3%YoY. Meanwhile, HSD volumes increased by 20%MoM and 11%YoY, respectively. During 7MFY26, industry volumes were up 3%YoY with MS and HSD up 3%YoY and 4%YoY, respectively.
  • Industry sources report a combination of factors that the MoM increase was a result of, particularly economic recovery and ease in inflation. Moreover, it was noted that fuel prices experienced a 20% annual drop in 2025 amid lower cost of supply—driving demand, along with higher passenger car sales supporting demand as well.
MCB Bank Limited (MCB): Earnings soften amid margin compression and normalization of non-core income – By HMFS Research

Feb 4 2026


HMFS Research


  • MCB Bank Limited (MCB) has announced its consolidated results for the year ended December 31, 2025, reporting profit after tax of PKR 58.8bn, translating into EPS of PKR 49.29 (in line with our expectations), down ~7.6% Y/Y compared to PKR 63.5bn (EPS: PKR 53.35) in CY24. The earnings decline largely reflects pressure on net interest income, higher operating costs, and normalization in non-markup income, partially offset by lower provisioning charges. On the payout front, MCB gave PKR 36/ per share as dividend with PKR 9 distributed in its final quarter (also in line with HMFS expectations).
  • Net markup/interest income declined ~4% Y/Y to PKR 161.2bn, primarily due to, a sharp rise in interest expense (~32% Y/Y). Non-markup income rose trivially by ~0.4% Y/Y to PKR 41.4bn Aided by improved FX income (~13% Y/Y), sharp increase in Dividend income (~52% Y/Y), and Income from derivates (~3x Y/Y).
Pakistan Market Wrap: Bullish Momentum Holds Firm – By HMFS Research

Feb 4 2026


HMFS Research


  • The KSE-100 Index maintained its bullish trajectory during today’s trading session, supported by strengthening economic indicators, optimism surrounding the potential inclusion of Pakistani equities in the JP Morgan Frontier Markets Index, expanding export volumes to China, and improving bilateral trade relations with key partner economies. The positive sentiment kept investor participation buoyant, enabling the benchmark to close at 187,832, marking a gain of 931 points from the previous session.
  • Trading activity remained robust, with 768mn shares exchanged on the KSE-100 Index and 1.19bn shares traded across the broader market. KEL (591mn shares) emerged as the top volume leader, followed by WAVESAPP (36mn shares) and FNEL (33mn shares). Market momentum is expected to remain constructive, supported by the ongoing corporate results season as investors recalibrate portfolios in response to earnings announcements. While elevated valuations may trigger intermittent profit-taking spells, the overall market outlook remains favourable. Investors are advised to remain vigilant, closely monitor evolving developments, and focus on fundamentally strong stocks offering sustainable long-term growth potential.
Interloop Limited (ILP): Strong Earnings Beat and Enhanced Shareholder Returns – By HMFS Research

Feb 4 2026


HMFS Research


  • Interloop Limited reported earnings well above HMFS expectations of PKR 1.9/share, delivering an EPS of PKR 2.47, marking an impressive 201% year-on-year growth. The company also declared a dividend of PKR 2/share, reinforcing shareholder value.
  • Revenue increased modestly by 3%, while gross profit expanded by 22%, supported by stable cost of sales. Operating and selling expenses declined, further strengthening operational efficiency.
Morning News: JPMorgan plans frontier bond index – By HMFS Research

Feb 4 2026


HMFS Research


  • JPMorgan is finalizing plans for a new index to track frontier market local currency bonds, investors consulted on the details told Reuters, as the bank looks to satisfy a growing appetite for riskier and more diversified high-yield debt. The move, which comes 15 years after the Wall Street bank launched its hard-currency Next Generation Markets Index (NEXGEM) frontier index, coincides with the year-long slump in the dollar and some extraordinary recent rallies in markets like Argentina, Ecuador and Uganda.
  • JPMorgan declined to comment on the plans. Six leading money managers who spoke to Reuters on condition of anonymity said the bank’s engagements with them reached an advanced stage in the second half of last year. The proposed index includes 20 to 25 countries, with Egypt, Vietnam, Kenya, Morocco, Kazakhstan, Pakistan, Nigeria, Sri Lanka and Bangladesh having the largest “weightings”, three of the managers said.
Ghani Dairies Limited IPO: Capitalizing on Pakistan’s Growing Dairy Market – By HMFS Research

Jan 30 2026


HMFS Research


  • Ghani Dairies Limited (GDL) is preparing for an Initial Public Offering (IPO), providing investors exposure to Pakistan’s formalized dairy supply chain, in contrast to traditional commodity-based milk businesses. The company operates a fully mechanized corporate dairy farm, supplying premium-quality raw milk to leading processors, including Nestlé Pakistan, Fauji Foods, and IRC Dairy Products.
  • The IPO is priced at a floor of PKR 24.00 per share, translating into a P/E of 17.56x on FY25 earnings. Applying the same multiple to the post-IPO forecasted FY27 EPS of PKR 3.80 yields a fair value of ~PKR 67 per share, representing ~178% upside from the floor price and ~98.6% from the maximum book building cap of PKR 33.60. The projected FY27 earnings growth is underpinned by near-term capacity expansion, which is expected to nearly double milk production, secured recurring supply contracts with leading processors providing predictable revenue streams, and operational leverage from scale, which should enhance margins further. By funding herd expansion.
Pakistan Market Wrap: Bulls Regain Control as Market Breaks Higher – By HMFS Research

Jan 30 2026


HMFS Research


  • The equity market traded firmly in the green today, with the benchmark index surging to an intra-day high of 4,281 points. Sentiment was underpinned by improving economic indicators alongside the conclusion of the rollover week, which helped restore risk appetite across the board. The KSE-100 ultimately closed at 184,174, marking a gain of 1,836 points from the previous session.
  • Trading activity remained robust, with volumes of 344mn shares on the KSE-100 and 802mn shares across the broader market. Volume leaders included KEL (81mn), HASCOL (66mn), and WTL (54mn). Going forward, market direction will be shaped by upcoming earnings announcements from blue-chip companies, key macroeconomic developments, and evolving geopolitical dynamics—particularly on the US–Iran front. In this backdrop, investors are advised to remain vigilant and focus on fundamentally sound stocks offering long-term growth potential.
Pakistan Market Wrap: Risk-Off Sentiment Triggers Sharp Correction – By HMFS Research

Jan 29 2026


HMFS Research


  • Pakistan’s equity market witnessed a sharp correction on Wednesday, with the benchmark KSE-100 Index shedding over 6,000 points as escalating US–Iran tensions triggered a broad risk-off move across assets. The index closed at 182,338, down 6,042 points (-3.21% d/d). Selling pressure was concentrated in index-heavy names, particularly across the fertilizer and banking sectors, as investors moved to lock in gains after the recent rally. Market participation weakened, with volumes coming off prior levels. The KSE-100 and All-Share indices recorded traded volumes of 414mn and 926mn shares, respectively. Activity was largely confined, with KEL (104mn shares), WTL (48mn), and BOP (31mn) emerging as the most actively traded stocks.
  • Looking ahead, near-term volatility is likely to persist, as global geopolitical developments continue to dominate sentiment, while the local market grapples with stretched valuations and profit-taking pressures following the recent sharp run-up. In the absence of a clear positive catalyst, further downside or consolidation cannot be ruled out. Investors are advised to remain selective and avoid chasing momentum, with a preference for high-quality, fundamentally sound stocks offering earnings visibility and balance sheet strength. Any further weakness may be better utilised to gradually build positions, rather than adopting an aggressive risk-on stance at current levels.
Fauji Fertilizer Company Limited (FFC): 4QCY25E – By HMFS Research

Jan 28 2026


HMFS Research


  • Fauji Fertilizer Company Limited (FFC) is expected to report an unconsolidated EPS of PKR ~17.5/ per share, along with a final dividend of PKR 12.5/ per share, in its Board Meeting scheduled for tomorrow, announcing year end results. We base the improvement in bottom-line on the back of improved farm economics post floods and inclement weather conditions, and most importantly recovery in the DAP business of the Company followed closely by Urea.
Pakistan Market Wrap: Profit-Taking Surfaces as MPC Decision Dampens Momentum – By HMFS Research

Jan 27 2026


HMFS Research


  • The Pakistan equity market ended the session on a cautious note, as broad-based profit-taking emerged after the recent rally, offsetting early gains. The benchmark KSE-100 Index closed at 188,203, down 385 points (-0.20%), as investors reassessed valuations amid mixed sentiment. The market’s tone was further impacted by the MPC decision to keep the policy rate unchanged, which was contrary to market expectations and triggered a re-pricing of the interest rate outlook.
  • Trading activity remained moderate, with turnover at the benchmark recorded at 342mn shares, while the broader All-Share index recorded exchanges of 745mn shares. Scrips such as KEL (90mn), HASCOL (48mn), and BOP (36mn) emerged as the most actively traded names during the day. Looking ahead, the market is likely to remain range-bound, as investors await further clarity from ongoing corporate result announcements and evolving macroeconomic developments. Investors are advised to remain selective and focus on scrips with fundamentally sound profiles and growth visibility.
Honda Atlas Cars Limited (HCAR): Result review – By HMFS Research

Jan 27 2026


HMFS Research


  • Honda Atlas Cars (Pakistan) Limited (HCAR) announced its 3QMY26 results, reporting a profit after tax (PAT) of PKR 655mn (EPS: PKR 4.59), down 12% QoQ but up 16% YoY. The QoQ decline in earnings was primarily driven by a sharp rise in finance costs and distribution & marketing expenses, which more than offset healthy revenue growth.
  • On a YoY basis, earnings improved on the back of strong topline growth, reflecting higher sales volumes amid improving demand conditions.