The market is likely to continue yesterday’s positive momentum, where the KSE-100 Index gained 439 pts (1%) on expectations of unchanged interest rates in near term as guided by State Bank.

On the economic front, Pakistan’s current account deficit widened further to US$1.91bn in November, higher import bill of US$6.4bn and decline in remittances contributed to the deficit.

We would continue to advise Cyclicals including Cements, Autos and would recommend Buy in LUCK, DGKC, MLCF, PIOC, HCAR and PSMC. We would further recommend accumulation in Banks (BAFL, UBL, HBL), Tech (SYS, OCTOPUS), Textile (NML, ILP), Power (KAPCO, HUBCO) and Chemicals (EPCL).

Courtesy – IMS Research