⚡ Flash Summary

UBL Fund Managers Limited has released its quarterly report for the period ended September 30, 2025. The report details the performance of various funds managed by UBL, including money market, equity, and fixed-income funds. The stock market has shown cumulative increases, with the KSE 100 to fresh highs, while investor interest in treasury bills remained robust, creating increased government revenue. In this context, the SBP maintained the policy rate at 11.0% in both the July 30 and September MPC meetings, emphasizing positive real rates alongside near-term risks from food, energy and the external environment.

📌 Key Takeaways

• 📈 KSE 100 increased by 32% reaching an all-time high of 165,493 points.
• 🏦 Banking, cement, and fertilizer sectors majorly drove the stock market rally contributing 14,418, 4,613 and 3,820 points respectively.
• 💰 Mutual funds and Individual investors were net buyers of USD 206 mn and USD 89 mn respectively.
• 📉 Foreigners and Banks continued to sell local equities, offloading shares amounting to USD 126 mn and USD 150 mn respectively.
• 💸 Total participation in T-bill auctions surged to PKR 9.37 trillion.
• 🎯 Government managed to raise approximately PKR 3.54 trillion from T-bills, exceeding the target of PKR 2.97 trillion.
• 📅 The 1-month T-bill attracted the highest interest, accounting for 41% of total bids.
• 💸 Fixed-rate Pakistan Investment Bonds (PIBs) attracted PKR 5 trillion in bids.
• ✅ Government accepted PKR 1.1 trillion in realized value from PIBs.
• 📊 UBL Liquidity Plus Fund (ULPF) yielded a return of 9.92% p.a. during 3MFY26.
• 💰 ULPF earned total income of PKR 630.601 million.
• 🏢 Net assets of ULPF were PKR 20,095.781 million.
• 📈 UBL Liquidity Fund (ULF) yielded return of 9.68% p.a. during 3MFY26.
• 💰 ULF earned total income of PKR 54.582 million.
• 🏢 ULF net assets were PKR 17,660.301 million.

🎯 Investment Thesis

Given the mixed signals of a strong stock market rally, increasing investor interest in T-bills, UBL’s strong fund returns, and the outlined risks, a HOLD recommendation is appropriate. The price target is dependent on broader market conditions and fund-specific performance. The time horizon is medium-term, reflecting the need for economic stabilization and gradual steering towards higher growth.