⚡ Flash Summary

Lakson Tactical Fund (LTF) reported a strong first quarter for FY26, outperforming its benchmark by 3.27% with an absolute return of 13% against the benchmark’s 9.73%. The fund’s size as of September 2025 is PKR 611.78 million. Pakistan’s economy showed early signs of stabilization in the first quarter of FY26, with inflation easing and foreign reserves improving. S&P Global upgraded Pakistan’s sovereign credit rating to B- from CCC+ on July 24, 2025, with a Stable Outlook.

📌 Key Takeaways

• 📈 LTF outperformed its benchmark by 3.27% in Q1 FY26.
• 💰 The fund generated an absolute return of 13%, compared to the benchmark return of 9.73%.
• ⚖️ As of September 2025, the fund size of LTF is PKR 611.78 million.
• 🏦 The fund maintains 44% exposure in Tbills.
• 🧱 Sector allocation is skewed towards Commercial Banks (6.1%), Oil & Gas Exploration (2.8%), and Fertilizer (2.3%).
• ✅ Pakistan’s economy showed early signs of stabilization in the first quarter of FY26.
• 📉 CPI inflation averaged 3.5% YoY in July-August 2025, rising to 5.6% in September, averaging 4.2% for Q1 FY26, down from 9.2% last year.
• ⬆️ Exports rose 11% YoY to USD 6.7 bn, while imports increased 10% to USD 12.5 bn.
• 💸 Foreign exchange reserves improved to USD 19.8 bn by the end of September, with SBP reserves at USD 14.4 bn.
• 🇵🇰 The Pakistani Rupee appreciated by 0.9% FYTD, closing September at PKR 281.3/USD.
• 🤝 A circular debt resolution agreement was signed on 24 Sep’25, paving the way for a PKR 1.225trn bank loan.
• 💯 The KSE-100 Index maintained strong momentum in 1QFY26, rising 41,114 points (33% QoQ) to close at 165,494.
• ⏫ Average daily volumes surged 94% YoY and 52% QoQ in the equity market.
• 🥇 Top Gainers in scrips included UBL (3,551 pts.), HUBC (3,084 pts.), and FFC (2,525pts.).
• ⭐ S&P Global upgraded Pakistan’s sovereign credit rating to B- from CCC+ on 24 Jul’25, with a Stable Outlook.

🎯 Investment Thesis

Based on LTF’s outperformance, positive economic indicators for Pakistan, and upgrade in sovereign credit rating, a HOLD recommendation is warranted. The fund’s strategic asset allocation and focus on key sectors position it for continued growth. However, potential risks require careful monitoring.