Karachi: In a detailed economic and equity market review for the third quarter of 2024, ABL Islamic Dedicated Stock Fund presented its performance alongside broader economic indicators, reflecting substantial fiscal adjustments and a notable decline in inflation rates. The report, shared on September 30, 2024, also highlighted the effects of macroeconomic policies and external financial assistance on Pakistan’s economic landscape.

According to information available from the Pakistan Stock Exchange (PSX), the quarter witnessed a significant downturn in inflation from 7.7% to 9.2% YoY, influenced heavily by the disbursement of a PKR7 billion Extended Fund Facility (EFF) by the IMF. This financial influx is aimed at stabilizing the economic framework and enhancing Pakistan's foreign currency reserves which saw a modest increase to USD 1 billion on September 27, 2024.

The ABL Islamic Dedicated Stock Fund reported a decrease in assets under management by 14% to PKR148.98 million, with the fund's performance trailing its benchmark, posting a -1.2% return compared to a 54.63% return of its benchmark. This period also saw the Pakistani rupee's recovery, although consumer prices continued to fluctuate, marked by a 9.2% decline in the Consumer Price Index.

On the investment front, market activity decreased as average trade volume fell by 21%, yet the average trade value rose by 19% to PKR66 million USD, compared to the same period last year. The fund experienced a significant outflow of foreign portfolio investments, totaling PKR21.7 million USD, leading to cautious market sentiments.

The equity markets, under the strain of geopolitical and economic uncertainties, saw the KSE-100 Index reaching a historical peak of 82,247 points but faced challenges due to foreign investment outflows due to FTSE rebalancing. Despite these outflows, the management remains optimistic about future prospects, provided fiscal discipline and political stability are maintained.

Management efforts were recognized with a stable rating from the Pakistan Credit Rating Agency, which re-affirmed ABL Islamic Dedicated Stock Fund’s management quality at ‘AM-One.’ As the fiscal year progresses, the fund's management team remains focused on leveraging economic reforms and stabilizing measures to harness potential growth opportunities in the evolving economic environment.