Karachi: The NBP Islamic Energy Fund (NIEF) has reported a notable performance in its quarterly results for the period ending September 30, 2026, amid a backdrop of economic challenges and market pressures. According to the quarterly report released by NBP Fund Management Limited on November 3, 2026, the fund's unit price increased by 5.8%, surpassing the performance of its benchmark, the KMI-30 Index, which declined by 5.3%.
The first quarter of fiscal year 2027 saw the KMI-30 Index drop significantly, closing at 243,609 points. The stock market faced pressure due to rising global oil prices and escalating tensions between the US and Iran. In September alone, the index fell by 3.2%, reflecting a big move. Despite these challenges, the NIEF's performance was bolstered by strategic asset allocation and favorable conditions in select sectors.
The report highlights that commercial banks, fertilizer, food and personal care products, insurance, investment banks/companies, oil and gas exploration, refinery, sugar and allied industries, tobacco, and transport sectors outperformed the market. In contrast, sectors such as auto parts and accessories, cable and electrical goods, cement, engineering, and others underperformed.
According to information available from the Pakistan Stock Exchange (PSX), individuals and companies emerged as the largest net buyers during this period, with inflows of USD 93 million and USD 25 million, respectively. Meanwhile, mutual funds, banks/DFIs, and brokers reduced their net holdings.
The financial report details that the NIEF's asset size increased from Rs. 5,085 million to Rs. 5,316 million, marking a moderate move of 4.5%. Since its inception, the NIEF's net asset value has surged by 336.9%, with the benchmark underperforming at an increase of 313.2%. The total income of the fund during the period was Rs. 304.19 million, with net income standing at Rs. 247.69 million after expenses.
In terms of asset allocation, the fund's investments were concentrated in oil and gas exploration companies (43.0%), refinery sector (35.4%), and oil and gas marketing companies (15.3%). Smaller allocations were made to power generation and distribution (5.8%) and cash equivalents and other receivables (0.5%).
Looking ahead, the market's direction remains uncertain, with developments in the Middle East and global oil prices likely to influence trends. However, record foreign exchange reserves, resilient remittances, and renewed access to international capital markets provide a supportive macroeconomic environment for the foreseeable future.
The report also notes that Pakistan's macroeconomic indicators have shown signs of improvement, with the State Bank of Pakistan's foreign exchange reserves reaching a record USD 21.4 billion in September, aided by a significant Eurobond issuance. Additionally, the current account deficit narrowed by 16% year-on-year, and workers' remittances rose by 14% to USD 10.9 billion. External debt servicing is expected to decrease, as fiscal performance stays on track with a primary surplus of 2.9% of GDP. Moody's upgraded Pakistan's sovereign rating to B3 in August, reflecting these positive trends.