⚡ Flash Summary

HBL Asset Management Limited’s transmission of the Quarterly Report for the period ended September 30, 2025, focuses on its conventional funds. Pakistan’s macro-economic outlook demonstrated further improvement during the quarter, supported by strengthened external accounts and increased foreign-exchange reserves. However, the State Bank of Pakistan maintained its policy interest rate due to emerging inflation risks and supply-side pressures. Pakistan’s equities market witnessed a strong rally, with the KSE-100 Index closing at a record high, driven by renewed investor optimism and improved corporate earnings.

📌 Key Takeaways

• Average annual inflation for the July-September quarter stood at 4.22%, significantly lower than the 9.19% recorded in the same period the previous year. 📉
• The KSE-100 Index gained significant momentum to close the quarter at a record high of 165,493 points, up by 39,866 points or 32%. 📈
• The KSE-All-Share Index recorded an average daily trading volume of 952 million shares and a value of PKR 44 billion, up 52% and 48%, respectively. 📊
• The money market remained largely stable, with the State Bank of Pakistan maintaining the policy rate at 11%. 🏦
• The total income and net income of the HBL Income Fund were Rs. 207.51 million and Rs. 181.62 million, respectively. 💰
• The Net Asset Value (NAV) per unit of the HBL Income Fund was Rs. 115.8839, giving an annualized return of 9.13%. ✨
• The size of the HBL Income Fund was Rs. 6.38 billion. ⚖️
• VIS Credit Rating Company Limited reaffirmed the Fund stability rating of A+(f) to the HBL Income Fund. ✅
• The total income and net income of the HBL Government Securities Fund was Rs. 142.35 million and Rs. 125.04 million, respectively. 🏦
• The Net Asset Value (NAV) per unit of the HBL Government Securities Fund was Rs. 116.7528, giving an annualized return of 9.36%. 📈
• The total income and net income of the HBL Money Market Fund was Rs. 1,052.76 million and Rs. 899.47 million, respectively. 💰

🎯 Investment Thesis

Given attractive valuations, improving macroeconomic indicators, and declining interest rates, a HOLD recommendation is appropriate. However, risks from global commodity shocks and geopolitical tensions should be monitored.