Karachi: The Board of Directors of AKD Securities Limited has reported positive financial results for the nine-month period ending March 31, 2025. The unaudited condensed interim financial statements reflect significant gains, bolstered by favorable macroeconomic conditions and robust stock market performance.
The first three quarters of fiscal year 2025 saw notable economic developments in Pakistan. Most prominently, the successful signing of a $7.00 billion Extended Fund Facility (EFF) program with the International Monetary Fund (IMF) contributed to fiscal and external improvements. The inflation rate experienced a dramatic decrease to 0.7% year-on-year in March 2025, a significant drop from 20.7% in the same period last year, largely due to declining food prices and a high base effect. Despite these positive trends, large-scale manufacturing contracted by 1.9% year-on-year during the first eight months of fiscal year 2025, primarily due to a slowdown in construction-related activities.
The KSE-100 Index, a key indicator of the equity market, registered a 50.2% return during the same period, illustrating strong market performance following a 61.6% gain in the previous year. The rally was influenced by monetary easing and improving macroeconomic conditions under the IMF program. According to information available from the Pakistan Stock Exchange (PSX), average traded volumes increased by 37.4% year-on-year to 793 million shares, while the average traded value surged by 93.2% year-on-year.
Pharmaceuticals, Investment Banks, and Oil & Gas Marketing sectors emerged as the top performers, with gains of 108%, 95%, and 94%, respectively. In contrast, the Automobile Parts & Accessories, Power Generation, and Engineering sectors experienced declines. Foreign investors, reacting to Pakistan's reclassification from Secondary Emerging Market to Frontier Market status, offloaded equities worth $242 million, while Mutual Funds, Companies, and Individuals absorbed much of this selling.
In the debt and currency markets, the current account balance registered a surplus of $1.90 billion, a marked improvement from a previous deficit of $1.70 billion. The State Bank of Pakistan's foreign exchange reserves increased to $10.7 billion, aided by IMF inflows and domestic market purchases. Despite these positive developments, the Pakistani Rupee depreciated by 0.7% against the US Dollar.
AKD Securities Limited's financial performance reflected these economic trends, with operating revenue reaching PKR 1,452 million, a 67.67% increase from the prior year. The equity brokerage segment led the growth, with revenues rising by 73.46% to PKR 1,379 million. Administrative and operating expenses, however, increased by 44.96% to PKR 821 million.
The economic outlook remains cautiously optimistic, with expectations of continued monetary easing and stable macroeconomic conditions. As Pakistan continues to navigate these economic dynamics, the stock market is expected to maintain its upward trajectory, supported by a shift from fixed income to equities.