General Elections on 8th Feb’24 and PSX

According to AKD Research, elections will overshadow next week, and market participation is expected to remain subdued. Following the successful completion of the elections, the market is anticipated to gain momentum. Furthermore, if they pass through the IMF node, the circular debt settlement plan and industrial tariff rationalization plan are likely to boost investors’ confidence. Overall, we maintain a bullish outlook on the Banks, E&P, and OMC sectors, anticipating opportunities for potential earnings growth and attractive Dividend Yields.

Meanwhile, in an outlook note, AHL Research said that in the upcoming week, we expect the market to remain range-bound as investors will be closely monitoring the General Elections on 8th Feb’24. Furthermore, the number of trading days will be limited due to public holidays. With the ongoing result season, certain scrips will remain under the limelight on the expectation of robust results. The scripts continue to trade at attractive levels, which could further entice investors.

Our preferred stocks are OGDC, PPL, MARI, MCB, UBL, MEBL, FABL, HBL LUCK, MLCF, FCCL, FFC, HUBC, PSO and INDU.

The KSE-100 is currently trading at a PER of 4.2x (2024) compared to its 5-year average of 5.9x, offering a dividend yield of ~10.6% compared to its 5-year average of ~6.0%.

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