According to analyst, the market to remain in the green after Eid. Progress on the circular debt clearance plan is likely to keep the energy chain in the limelight. Moreover, after a week of holidays, investors are likely to build new positions where we highlight cyclical sectors to be the most attractive. The recent decline in COVID infection ratio should also help keep sentiment upbeat. Our preferred stocks are EPCL, PSO, OGDC, HUBC, HBL, MCB, FFC, LUCK, ACPL, ENGRO, UBL, and NML. The KSE-100 is currently trading at a PER of 6.7x (2021) compared to Asia Pac regional average of 15.8x while offering a dividend yield of ~7.3% versus ~2.6% offered by the region.

Courtesy – AHL Research