Current 185,057.83 High 185,611.72 Low 182,792.39 Open 185,057.83 Change 883.35 (0.48%) Volume 215,797,274 W E F I N A N C I A L S E R V I C E S L T D . TREC Holder – Pakistan Stock Exchange Ltd. 506-508 5th Floor, Pakistan Stock Exchange Building Stock Exchange Road , Karcahi-74000, Pakistan E m a i l : r e s e a r c h @ w e . c o m . p k (021) 32410578 www.weonline.biz Inflation CPI 5.80% Policy Rate 10.5% Monthly (USD Million) Reserves $21,012 Trade Balance -$2,986 Current Account -$244 Remittance $3,589 Govt ending solar net metering READ MORE Mixed Highnoon Labs acquisition READ MORE Positive Urea sales slump after December peak READ MORE Negative L I M I T E D WE FINANCIAL SERVICES MORNING BRIEFING 3 February, 2026 Lawmakers expect SBP rate cut READ MORE Positive Govt 5‐yr gemstone plan READ MORE Positive Textile sector seeks super tax pause READ MORE Negative KSE 100 Index News Impacting PSX KSE 100 Index Statistics Economic Snapshot 1 Item Value (PKR) Gold 1 Tola PKR 490,362 Petrol Rs/Ltr 253.17 Diesel Rs/Ltr 257.08 0 20,000 40,000 60,000 80,000 100,000 Sensex Nasdaq S&P 500 CAC40 FTSE 100 T-Bills 3M 10.9881% T-Bills 6M 10.9999% T-Bills 1Y 11.2681% PIB 3Y 11.4900% PIB 5Y 11.6390% PIB 10Y 12.0005% GIS FRD (Cut-off / Price) 1Y 10.4801% / 90.5376 GIS FRR (Cut-off / Price) 3Y 10.7355% / 100.0008 GIS FRR (Cut-off / Price) 5Y 11.0300% / 100.3661 GIS FRR (Cut-off / Price) 10Y 11.8499% / 32.6320 Currency PKR Day % USD 279.75 0.303 -0.11% EUR 334.27 1.548 0.47% GBP 385.24 2.195 0.57% JPY 2.17 0.00417 -0.19% SAR 74.68 0.0919 0.12% AED 4.23 0.00865 0.20% MYR 4.38 0.0274 -0.62% NEER 37.97 REER 103.73 Commodities World Index Debt Instruments Yields Government Ijarah Sukuk (GIS) Exchange Rates Grand Total FIPI, net (2,461,306) Banks/DFI (4,171,666) Broker Proprietary Trading 349,274 Companies 832,403 Individuals (1,945,526) Insurance Companies (697,665) Mutual Funds 8,401,257 NBFC (12,849) Other Organization (293,919) Grand Total LIPI, net 2,461,309 Portfolio Investments FIPI LIPI (USD) W E F I N A N C I A L S E R V I C E S L T D . TREC Holder – Pakistan Stock Exchange Ltd. 506-508 5th Floor, Pakistan Stock Exchange Building Stock Exchange Road , Karcahi-74000, Pakistan E m a i l : r e s e a r c h @ w e . c o m . p k (021) 32410578 www.weonline.biz 2 L I M I T E D WE FINANCIAL SERVICES MORNING BRIEFING 3 February, 2026 1. GOVT EDGES CLOSER TO ENDING UNIT‐TO‐UNIT ADJUSTMENT FOR SOLAR CONSUMERS THE GOVERNMENT IS FINALIZING PLANS TO DISCONTINUE THE CURRENT NET METERING SYSTEM WHERE SOLAR CONSUMERS OFFSET THEIR ELECTRICITY BILLS UNIT‐TO‐UNIT AGAINST GRID CONSUMPTION. INSTEAD, A NEW FRAMEWORK WILL LIKELY INTRODUCE MONETARY SETTLEMENT OR REDUCED CREDIT FOR SURPLUS SOLAR UNITS SUPPLIED TO THE GRID. POLICYMAKERS ARGUE THIS CHANGE IS NECESSARY TO PROTECT DISTRIBUTION COMPANIES (DISCOS) FROM REVENUE LOSSES AND ENSURE GRID SUSTAINABILITY. THE MOVE IS PART OF BROADER REFORMS IN THE ENERGY SECTOR AIMED AT BALANCING CONSUMER INCENTIVES WITH UTILITY FINANCIAL HEALTH. THIS POLICY SHIFT IS NEGATIVE FOR RENEWABLE ENERGY ADOPTION AND COMPANIES LINKED TO SOLAR EQUIPMENT OR FINANCING, AS REDUCED INCENTIVES WILL DISCOURAGE NEW INSTALLATIONS. HOWEVER, IT IS POSITIVE FOR LISTED POWER DISTRIBUTION AND GENERATION COMPANIES ON THE PSX, AS IT HELPS STABILIZE THEIR REVENUE STREAMS AND REDUCES THE RISK OF FINANCIAL EROSION FROM NET METERING. THE NET IMPACT IS MIXED, BUT THE DOMINANT EFFECT IS POSITIVE FOR CONVENTIONAL ENERGY STOCKS (POWER GENERATION, DISTRIBUTION) AND NEGATIVE FOR RENEWABLE‐LINKED BUSINESSES. INVESTORS MAY ROTATE CAPITAL TOWARD TRADITIONAL UTILITIES WHILE REDUCING EXPOSURE TO SOLAR‐RELATED VENTURES. Scroll to Top Recent News Affecting PSX W E F I N A N C I A L S E R V I C E S L T D . TREC Holder – Pakistan Stock Exchange Ltd. 506-508 5th Floor, Pakistan Stock Exchange Building Stock Exchange Road , Karcahi-74000, Pakistan E m a i l : r e s e a r c h @ w e . c o m . p k (021) 32410578 www.weonline.biz 3 L I M I T E D WE FINANCIAL SERVICES MORNING BRIEFING 3 February, 2026 Recent News Affecting PSX 2. HIGHNOON LABORATORIES TO ACQUIRE NEW COMPANY TO STRENGTHEN MARKET POSITION HIGHNOON LABORATORIES HAS ANNOUNCED PLANS TO ACQUIRE A NEW PHARMACEUTICAL COMPANY TO EXPAND ITS PRODUCT PORTFOLIO AND IMPROVE ITS COMPETITIVE STANDING IN THE DOMESTIC MARKET. THE ACQUISITION IS AIMED AT ENHANCING DISTRIBUTION NETWORKS, DIVERSIFYING THERAPEUTIC OFFERINGS, AND CAPTURING A LARGER SHARE OF PAKISTAN’S GROWING HEALTHCARE SECTOR. MANAGEMENT EXPECTS THE MOVE TO CREATE SYNERGIES IN MANUFACTURING AND MARKETING, ULTIMATELY BOOSTING OPERATIONAL EFFICIENCY. THE DEAL REFLECTS HIGHNOON’S STRATEGY OF GROWTH THROUGH CONSOLIDATION IN THE PHARMACEUTICAL INDUSTRY. THIS DEVELOPMENT IS POSITIVE FOR THE PHARMACEUTICAL SECTOR, PARTICULARLY FOR HIGHNOON LABORATORIES, AS ACQUISITIONS TYPICALLY SIGNAL GROWTH, STRONGER MARKET POSITIONING, AND POTENTIAL REVENUE EXPANSION. INVESTORS MAY VIEW THE MOVE AS A SIGN OF CONFIDENCE IN THE SECTOR’S LONG‐TERM DEMAND OUTLOOK, LEADING TO INCREASED BUYING INTEREST IN PHARMA STOCKS. HOWEVER, SHORT‐TERM SENTIMENT COULD HINGE ON ACQUISITION COSTS AND INTEGRATION RISKS, THOUGH THE NET EFFECT IS EXPECTED TO BE FAVORABLE. THE BROADER PSX MAY SEE SELECTIVE GAINS IN HEALTHCARE‐LINKED COUNTERS, WITH HIGHNOON LIKELY OUTPERFORMING PEERS. Scroll to Top W E F I N A N C I A L S E R V I C E S L T D . TREC Holder – Pakistan Stock Exchange Ltd. 506-508 5th Floor, Pakistan Stock Exchange Building Stock Exchange Road , Karcahi-74000, Pakistan E m a i l : r e s e a r c h @ w e . c o m . p k (021) 32410578 www.weonline.biz 4 L I M I T E D WE FINANCIAL SERVICES MORNING BRIEFING 3 February, 2026 Recent News Affecting PSX 3. UREA SALES TO HIT OVER 6‐YEAR LOW AFTER RECORD DECEMBER SURGE INDUSTRY DATA SHOWS THAT UREA SALES IN PAKISTAN ARE EXPECTED TO DECLINE SHARPLY IN JANUARY, FALLING TO THEIR LOWEST LEVEL IN MORE THAN SIX YEARS. THIS COMES IMMEDIATELY AFTER RECORD‐HIGH SALES IN DECEMBER, DRIVEN BY SEASONAL DEMAND AND STOCKING BY FARMERS. THE SLOWDOWN REFLECTS DEMAND SATURATION, TIGHTER LIQUIDITY CONDITIONS, AND POSSIBLE SUPPLY CHAIN ADJUSTMENTS. FERTILIZER COMPANIES ARE LIKELY TO FACE WEAKER VOLUMES IN THE NEAR TERM COMPARED TO THE EXCEPTIONAL DECEMBER PERFORMANCE. THIS DEVELOPMENT IS NEGATIVE FOR THE FERTILIZER SECTOR, AS DECLINING SALES WILL PRESSURE REVENUE AND PROFITABILITY FOR LISTED FERTILIZER MANUFACTURERS. INVESTORS MAY ANTICIPATE SOFTER QUARTERLY EARNINGS, LEADING TO SELLING PRESSURE IN FERTILIZER STOCKS. THE BROADER MARKET IMPACT IS LIMITED, BUT SENTIMENT IN THE AGRICULTURE‐LINKED SEGMENT COULD WEAKEN. SHORT‐TERM VOLATILITY IS EXPECTED, WITH FERTILIZER COUNTERS UNDERPERFORMING UNTIL DEMAND STABILIZES. Scroll to Top W E F I N A N C I A L S E R V I C E S L T D . TREC Holder – Pakistan Stock Exchange Ltd. 506-508 5th Floor, Pakistan Stock Exchange Building Stock Exchange Road , Karcahi-74000, Pakistan E m a i l : r e s e a r c h @ w e . c o m . p k (021) 32410578 www.weonline.biz 5 L I M I T E D WE FINANCIAL SERVICES MORNING BRIEFING 3 February, 2026 Recent News Affecting PSX 4. LAWMAKERS HOPEFUL FOR SBP INTEREST RATE TO DROP INTO SINGLE DIGITS BY JUNE 2026 LAWMAKERS HAVE EXPRESSED OPTIMISM THAT THE STATE BANK OF PAKISTAN (SBP) WILL REDUCE ITS POLICY RATE TO SINGLE DIGITS BY MID‐2026. THE EXPECTATION IS BASED ON EASING INFLATIONARY PRESSURES AND IMPROVING MACROECONOMIC INDICATORS. A LOWER INTEREST RATE ENVIRONMENT WOULD SUPPORT CREDIT GROWTH, INVESTMENT ACTIVITY, AND OVERALL ECONOMIC EXPANSION. THE MOVE IS SEEN AS PART OF BROADER MONETARY EASING TO STIMULATE GROWTH WHILE MAINTAINING FINANCIAL STABILITY. THIS DEVELOPMENT IS POSITIVE FOR THE EQUITY MARKET OVERALL, AS LOWER INTEREST RATES REDUCE BORROWING COSTS AND MAKE EQUITIES MORE ATTRACTIVE COMPARED TO FIXED‐INCOME INSTRUMENTS. SECTORS SUCH AS BANKING, CONSTRUCTION, CEMENT, AND CONSUMER DISCRETIONARY ARE LIKELY TO BENEFIT FROM INCREASED CREDIT DEMAND AND INVESTMENT FLOWS. INVESTOR SENTIMENT MAY STRENGTHEN IN ANTICIPATION OF MONETARY EASING, LEADING TO BULLISH ACTIVITY ACROSS CYCLICAL STOCKS. THE NET EFFECT IS EXPECTED TO BE BROAD‐BASED GAINS ON THE PSX, WITH RATE‐SENSITIVE SECTORS OUTPERFORMING. Scroll to Top W E F I N A N C I A L S E R V I C E S L T D . TREC Holder – Pakistan Stock Exchange Ltd. 506-508 5th Floor, Pakistan Stock Exchange Building Stock Exchange Road , Karcahi-74000, Pakistan E m a i l : r e s e a r c h @ w e . c o m . p k (021) 32410578 www.weonline.biz 6 L I M I T E D WE FINANCIAL SERVICES MORNING BRIEFING 3 February, 2026 Recent News Affecting PSX 5. GOVT EYES 5‐YEAR PLAN TO TAP $450 BILLION GEMSTONE RESERVES IN PAKISTAN THE GOVERNMENT HAS UNVEILED PLANS TO DEVELOP A STRUCTURED FIVE‐YEAR PROGRAM TO EXPLOIT PAKISTAN’S ESTIMATED $450 BILLION WORTH OF GEMSTONE RESERVES. THE INITIATIVE AIMS TO FORMALIZE MINING OPERATIONS, ATTRACT INVESTMENT, AND BOOST EXPORTS OF PRECIOUS AND SEMI‐PRECIOUS STONES. AUTHORITIES EXPECT THE PLAN TO CREATE JOBS, ENHANCE FOREIGN EXCHANGE EARNINGS, AND STRENGTHEN PAKISTAN’S POSITION IN THE GLOBAL GEMSTONE MARKET. THE PROJECT WILL INVOLVE REGULATORY REFORMS, INFRASTRUCTURE DEVELOPMENT, AND PARTNERSHIPS WITH PRIVATE INVESTORS. THIS DEVELOPMENT IS POSITIVE FOR THE MINING AND EXPORT SECTORS, AS IT SIGNALS POTENTIAL GROWTH OPPORTUNITIES AND NEW REVENUE STREAMS. LISTED COMPANIES INVOLVED IN MINERAL EXPLORATION, EXPORT FACILITATION, OR RELATED INDUSTRIES COULD BENEFIT FROM INVESTOR OPTIMISM. THE INITIATIVE MAY ALSO IMPROVE PAKISTAN’S EXTERNAL ACCOUNT POSITION, INDIRECTLY SUPPORTING BROADER MARKET SENTIMENT. WHILE EXECUTION RISKS REMAIN, THE ANNOUNCEMENT IS LIKELY TO GENERATE BULLISH INTEREST IN RESOURCE‐LINKED STOCKS AND EXPORT‐ORIENTED BUSINESSES. Scroll to Top W E F I N A N C I A L S E R V I C E S L T D . TREC Holder – Pakistan Stock Exchange Ltd. 506-508 5th Floor, Pakistan Stock Exchange Building Stock Exchange Road , Karcahi-74000, Pakistan E m a i l : r e s e a r c h @ w e . c o m . p k (021) 32410578 www.weonline.biz 7 L I M I T E D WE FINANCIAL SERVICES MORNING BRIEFING 3 February, 2026 Recent News Affecting PSX 6. TEXTILE INDUSTRY URGES FBR TO PAUSE SUPER TAX RECOVERY UNTIL ISSUES ARE ADDRESSED TEXTILE SECTOR REPRESENTATIVES HAVE APPEALED TO THE FEDERAL BOARD OF REVENUE (FBR) TO HALT THE RECOVERY OF SUPER TAX UNTIL STRUCTURAL ISSUES FACING THE INDUSTRY ARE RESOLVED. THEY ARGUE THAT THE ADDITIONAL TAX BURDEN IS WORSENING LIQUIDITY CHALLENGES, REDUCING COMPETITIVENESS, AND DISCOURAGING INVESTMENT IN EXPORTS. THE INDUSTRY HAS HIGHLIGHTED CONCERNS OVER RISING COSTS, ENERGY SHORTAGES, AND GLOBAL DEMAND PRESSURES. STAKEHOLDERS ARE SEEKING RELIEF MEASURES TO STABILIZE OPERATIONS AND SUSTAIN PAKISTAN’S LARGEST EXPORT‐ORIENTED SECTOR. THIS DEVELOPMENT IS NEGATIVE FOR TEXTILE STOCKS, AS CONTINUED SUPER TAX ENFORCEMENT WILL WEIGH ON PROFITABILITY AND INVESTOR SENTIMENT. EXPORT‐ORIENTED COMPANIES MAY FACE MARGIN COMPRESSION, LEADING TO WEAKER EARNINGS OUTLOOKS. THE UNCERTAINTY AROUND TAX RELIEF COULD TRIGGER CAUTIOUS TRADING IN TEXTILE COUNTERS, WITH INVESTORS REDUCING EXPOSURE UNTIL CLARITY EMERGES. BROADER PSX IMPACT IS LIMITED, BUT TEXTILE SECTOR UNDERPERFORMANCE MAY DRAG ON OVERALL MARKET SENTIMENT GIVEN ITS EXPORT SIGNIFICANCE. Scroll to Top W E F I N A N C I A L S E R V I C E S L T D . TREC Holder – Pakistan Stock Exchange Ltd. 506-508 5th Floor, Pakistan Stock Exchange Building Stock Exchange Road , Karcahi-74000, Pakistan E m a i l : r e s e a r c h @ w e . c o m . p k (021) 32410578 www.weonline.biz 8 L I M I T E D WE FINANCIAL SERVICES MORNING BRIEFING 3 February, 2026 News Headline Impact Affected Sectors Anticipated Change Govt Edges Closer to Ending Unit‐to‐Unit Adjustment for Solar Consumers Mixed (Net Positive for conventio nal energy, Negative for renewable s) Power & Energy Rotation toward traditional utilities; renewable‐linked counters may weaken Highnoon Laboratories to Acquire New Company to Strengthen Market Position Positive Pharmaceuticals Likely bullish sentiment in pharma stocks; Highnoon expected to outperform peers Urea Sales to Hit Over 6‐Year Low After Record December Surge Negative Fertilizer Selling pressure on fertilizer stocks; short‐term underperformance expected Lawmakers Hopeful for SBP Interest Rate to Drop Into Single Digits by June 2026 Positive Banking, Cement, Construction, Consumer Broad‐based gains; rate‐sensitive sectors likely to rally Govt Eyes 5‐Year Plan to Tap $450 Billion Gemstone Reserves in Pakistan Positive Mining, Export‐Oriented Businesses Investor optimism in resource‐linked stocks; potential bullish activity Textile Industry Urges FBR to Pause Super Tax Recovery Until Issues Are Addressed Negative Textiles Margin pressure and cautious trading; sector underperformance likely Market Impact Overview W E F I N A N C I A L S E R V I C E S L T D . TREC Holder – Pakistan Stock Exchange Ltd. 506-508 5th Floor, Pakistan Stock Exchange Building Stock Exchange Road , Karcahi-74000, Pakistan E m a i l : r e s e a r c h @ w e . c o m . p k (021) 32410578 www.weonline.biz 9 L I M I T E D WE FINANCIAL SERVICES MORNING BRIEFING 3 February, 2026 Analyst Certificate: The Research Report is prepared by the research analyst at WE Financial Services Ltd. It includes analysis and views of our research team that precisely reflects the personal views and opinions of the analysts about the subject security(ies) or sector (or economy), and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. In addition, we currently do not have any interest (financial or otherwise) in the subject security(ies). The views expressed in this report are unbiased and independent opinions of the Research Analyst which accurately reflect his/her personal views about all of the subject companies/securities and no part of his/her compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report. Disclaimer: The Report is purely for information purposes and the opinions expressed in the Report are our current opinions as of the date of the Report and may be subject to change from time to time without notice. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Information, opinions and estimates contained in this report reflect a judgment of its original date of publication by WE Financial Services Ltd. and are subject to change without notice. The price, value of and income from any of the securities or financial instruments mentioned in this report can fall as well as rise. The value of securities and financial instruments is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities or financial instruments. The information provided in the Report is from publicly available data, which we believe, are reliable. This document does not constitute an offer or solicitation for the purchase or sale of any security. This publication is intended only for distribution to the clients of the Company who are assumed to be reasonably sophisticated investors that understand the risks involved in investing in equity securities. The information contained herein is based upon publicly available data and sources believed to be reliable. While every care was taken to ensure accuracy and objectivity, WE Financial Services Ltd. does not represent that it is accurate or complete and it should not be relied on as such. In particular, the report takes no account of the investment objectives, financial situation and particular needs of investors. The information given in this document is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. This information is subject to change without any prior notice. WE Financial Services Ltd. reserves the right to make modifications and alterations to this statement as may be required from time to time. However, WE Financial Services Ltd. is under no obligation to update or keep the information current. WE Financial Services Ltd. is committed to providing independent and transparent recommendation to its client and would be happy to provide any information in response to specific client queries. 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Stock Ratings WE Financial Services Ltd. uses three rating categories, depending upon return form current market price, with Target period as December 2018 for Target Price. In addition, return excludes all type of taxes. For more details kindly refer the following table: Equity Valuation Methodology WE Research uses the following valuation technique(s) to arrive at the period end target prices: Discounted Cash Flow (DCF) Dividend Discount Model (DDM) Relative valuation (P/E, P/B, P/S) Equity & Asset return based (EVA, Residual income) Risks The following risks may potentially impact our valuations of subject security(ies): Market Risk Interest Rate Risk Exchange rate risk Disclaimer: This document has been prepared by Research Analysts at WE Financial Services Ltd. WE Research is Available on our website (http://www.we.com.pk/research.php), Thomson Reuters, Bloomberg, S & P Capital IQ, FactSet Potential to target price Buy Upside More than +10% from last closing price Hold In between -10% and +10% from last closing price Sell Less than -10% from last closing price W E F I N A N C I A L S E R V I C E S L T D . TREC Holder – Pakistan Stock Exchange Ltd. 506-508 5th Floor, Pakistan Stock Exchange Building Stock Exchange Road , Karcahi-74000, Pakistan E m a i l : r e s e a r c h @ w e . c o m . p k (021) 32410578 www.weonline.biz 10 L I M I T E D WE FINANCIAL SERVICES MORNING BRIEFING 3 February, 2026