Expect the market to trade in a range amid ongoing political and economic anxiety, where IMF talks are still in progress while expectations are high for the resumption of US$6bn extended fund facility. Moreover, Pakistan may remain on the FATF Grey List for another four months.
On the economic front, current account deficit narrowed to US$1.113bn in September from US$1.473bn in August while PKR continued to slide to a record low against US dollar to 172.78 in the interbank market.
On the political front, investors are still eyeing the appointment of DG ISI, where the government is reassuring that the matter would be resolved by this week.
We would continue to advise accumulation on dips in Tech (TRG, AVN, SYS), Power (KAPCO) and Banks (MEBL, BAFL, UBL).
Courtesy- IMS Research