Karachi: HBL Asset Management Ltd. presented its quarterly report for the period ending September 30, 2026, amid a backdrop of geopolitical uncertainties and volatile oil prices. The report, dated November 2, 2026, outlines the performance of various funds under its management, including the HBL Islamic Money Market Fund and HBL Islamic Income Fund, amidst economic challenges.
The economic environment in Pakistan during the first quarter of FY27 was marked by macroeconomic stability despite external pressures such as increased conflict in the Middle East and concerns over the Strait of Hormuz, which pushed global oil prices higher. Average headline inflation rose to 10.2%, a significant increase from the 4.3% recorded in the same period last year. The current account deficit narrowed by approximately 36% to USD 543 million in July-August FY27, bolstered by strong worker remittances, which increased to USD 10.9 billion over the quarter. The goods trade deficit, however, remained elevated at approximately USD 10.8 billion.
In the stock market, the KMI-30 Index closed the quarter at 243,609 points, reflecting a decline of 5.3%, a very large move, from its June 2026 close. According to information available from the Pakistan Stock Exchange (PSX), average daily trading volumes decreased by 25%, and foreign investors were net sellers, with a net sale of USD 6.8 million. Domestically, individuals and companies were net buyers, purchasing USD 94 million and USD 29.8 million, respectively.
The HBL Islamic Money Market Fund reported a total income of Rs. 1.92 billion and a net income of Rs. 1.74 billion with a fund size of Rs. 61.96 billion as of September 30, 2026. The fund achieved an annualized return of 10.01%, matching its benchmark. Conversely, the HBL Islamic Income Fund saw its total income at Rs. 0.39 billion and net income at Rs. 0.34 billion, with a fund size of Rs. 16.86 billion, surpassing its benchmark return of 9.46% with an 11.01% annualized return.
The HBL Islamic Stock Fund and HBL Islamic Equity Fund experienced net losses of Rs. 22.81 million and Rs. 21.23 million, respectively. The Stock Fund's return was down 2.12%, a moderate move, while the Equity Fund's return was down 1.62%, classified as a big move, both performing better than the benchmark negative return of 5.33%.
The VIS Credit Rating Company Limited reaffirmed the management quality rating of 'AM-I' to the Management Company with a stable outlook, highlighting the company's resilience amid challenging market conditions. Looking forward, the equity market is expected to be influenced by geopolitical developments, oil-price dynamics, and progress under the ongoing IMF program.