Globiscope
Mutual funds sharply increased their exposure to Pakistan State Oil (PSO) in November. As a result, PSO emerged as the most favoured stock across the industry, according to a new research report by AHL Research.
This strong move highlights continued confidence in energy sector stocks. It comes despite a cautious overall market environment.
PSO Tops Mutual Fund Holdings
The report shows that mutual funds held 47.2 percent of PSO’s free float by the end of November. This was the highest exposure among all listed companies covered in the study.
Fund managers clearly preferred PSO. They viewed it as a stable and strategic energy play during uncertain market conditions.
Other Large-Cap Stocks Remain in Demand
Alongside PSO, several blue-chip stocks attracted strong interest. Oil and Gas Development Company (OGDC) topped the list by number of funds.
A total of 85 mutual funds held OGDC shares. Together, they accounted for 22.8 percent of the company’s free float.
Lucky Cement followed closely. It was held by 84 funds with a free float exposure of 16.8 percent.
Pakistan Petroleum Limited (PPL) also remained a top pick. Around 79 funds held a combined 20.4 percent of its free float.
Dividend and Utility Stocks Hold Firm
Fauji Fertilizer Company and Hub Power Company continued to feature prominently in portfolios. Their steady dividends kept investor interest intact.
Mari Petroleum, Kohat Cement, and Pakistan Aluminium Beverage Cans also ranked among the most widely held stocks during the month.
Sharp Month-on-Month Changes
The report highlights significant changes in mutual fund positions. Maple Leaf Cement recorded the largest increase.
Its mutual fund ownership surged by more than 266 percent compared to October. This marked a strong turnaround in sentiment.
Fauji Cement and Pakistan Petroleum Limited also posted solid gains in holdings. This signaled renewed interest in selected cement and energy stocks.
Some Stocks See Reduced Exposure
Not all stocks benefited from the trend. Mutual funds reduced their exposure to Faysal Bank, AGP, and Pakistan Tobacco.
These declines suggest selective profit-taking and portfolio rebalancing during November.
Gradual Diversification Continues
Beyond traditional heavyweights, mutual funds showed signs of diversification.
Cherat Cement, Fatima Fertilizer, Bank Alfalah, DG Khan Cement, and Fauji Cement gained traction. A growing number of funds added these stocks to their portfolios.
Equity Exposure Dips Slightly
Despite strong interest in select equities, overall equity exposure edged lower.
Equity mutual funds accounted for 14.82 percent of total industry assets in November. This was down from 15.3 percent in the previous month.
The shift indicates a slightly more cautious stance among fund managers.
Conclusion: Selective Optimism in a Cautious Market
The data paints a clear picture. Mutual funds remain optimistic, but selective.
Energy and dividend-paying stocks continue to dominate portfolios. At the same time, managers are actively adjusting positions to manage risk.
The findings are based on mutual fund disclosures, Pakistan Stock Exchange data, and analysis by AHL Research.
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