Mutual funds greatly increased their exposure to Pakistan State Oil in November, making it the most favoured stock across the industry, according to a new research report by AHL Research.
The report shows that mutual funds collectively held 47.2 percent of PSO’s free float by the end of November, the highest among all listed companies tracked in the study. This strong positioning highlights continued investor preference for energy sector stocks despite a cautious market environment.
Alongside PSO, several other large-cap names emerged as clear favourites. Oil and Gas Development Company attracted the highest number of funds, with 85 mutual funds holding the stock, accounting for 22.8 percent of its free float.
Lucky Cement followed closely, held by 84 funds with a 16.8 percent free float exposure. Pakistan Petroleum Limited also remained firmly in demand, with 79 funds holding a combined 20.4 percent of its free float.
Fauji Fertilizer Company and Hub Power Company continued to feature prominently in portfolios, reflecting sustained interest in high dividend and utility-linked stocks. Mari Petroleum, Kohat Cement, and Pakistan Aluminium Beverage Cans were also among the most widely held names during the month.
The report further highlights notable month-on-month changes in holdings. Maple Leaf Cement saw the largest increase in mutual fund ownership, rising by more than 266 percent compared to October.
Fauji Cement and Pakistan Petroleum Limited also recorded strong increases in holdings, indicating renewed interest in select cement and energy stocks.
In contrast, some stocks saw reduced exposure. Faysal Bank, AGP, and Pakistan Tobacco experienced notable declines in mutual fund holdings during November, suggesting selective profit-taking or portfolio rebalancing.
Beyond traditional heavyweights, the data points to gradual diversification. Stocks such as Cherat Cement, Fatima Fertilizer, Bank Alfalah, DG Khan Cement and Fauji Cement gained traction, being added by a growing number of funds.
Despite strong interest in selected equities, overall equity exposure declined slightly. Equity mutual funds accounted for 14.82 percent of the total mutual fund industry assets in November, down from 15.3 percent in the previous month, indicating a marginal shift toward caution among fund managers
The report is based on mutual fund holdings for November and draws data from fund manager reports, the Pakistan Stock Exchange and AHL Research analysis.