Outlook and Recommendation
Following clarity in the monetary policy post yesterday’s meeting, experts believe the market will react accordingly next week. The recent bill to make SBP autonomous as well as today’s stance should now effectively remove another pre-condition of the IMF and therefore, we believe that market sentiment is hinged upon announcement of the IMF package.
Once through, the market is likely to post a rebound. Our preferred stocks are FABL, EPCL, PSO, OGDC, HUBC, HBL, MCB, LUCK, AGHA, FFC, ENGRO, INDU, PTL, SNGP, UNITY, HTL, and ILP. The KSE-100 is currently trading at a PER of 4.9x (2022) compared to Asia Pac regional average of 14.8x while offering a dividend yield of ~8.4% versus ~2.2% offered by the region.
Courtesy – AHL Research