The KSE-100 has lost more than 3% this week, with Friday’s 150bps rate hike taking precedence over the IMF staff-level agreement. Secondary market yields have continued to climb, impacting sentiment in equities. Likely net FI selling in the MSCI EM to FM move next week is not helping.
Stocks with high DY such as UBL, MCB, BAFL, POL, FFC, and ENGRO look best, but there is an opportunity to build positions on dips in names such as LUCK, ISL, etc PSO as well.
Courtesy – IMS Research