Expect range-play activity to continue over delay in Finance Supplementary Bill and SBP Bill 2021; both are pre-conditions for the revival of IMF program. To highlight, IMF is meeting on 12th of January to asses Pakistan’s case where Finance Minister Shaukat Tarin is confident that a delay of two to four days in the approval of the aforementioned bills would not be an issue.
PSMC to shine today as it broke another monthly sales record in December 2021, selling 15,500 units.
We think the market would rally once clarity emerges on IMF program while we would recommend accumulation in Banks (BAFL, UBL, HBL, MEBL), Cements (PIOC, LUCK, MLCF, DGKC), Tech (SYS, OCTOPUS), Textile (GATM, ILP), Power (KAPCO, HUBCO) and Chemicals (EPCL).
Courtesy – IMS Research