All eyes are on the Monetary Policy meeting due today, where expectations are that the SBP would continue its contractionary stance; we think a rate hike above 100bps would bring in more selling pressure. On the economic front, revival of IMF program might be delayed for a couple of weeks as Pakistan needs more time to implement the agreed pre-conditions.
Moreover, inflows of home remittances continue to remain strong amounting to $12.9 billion for 5MFY22, up by 9.6% YoY, but there was a mild mom decline in November. Moreover, Auto sales declined by 11% mom in Nov 2021 with PSMC witnessed sharpest decline of 17% mom and INDU fell by 8% mom. However, HCAR recorded an increase of 13% mom.
Courtesy- Intermarket Securities Limited.