Experts expects that the market to continue trading in green. The low interest rate regime and pro-growth stance of the SBP should keep equities attractive. Moreover, as mentioned earlier the result season should keep cyclicals in limelight while reduced provisioning, and healthy fee income/capital gains should help fuel banking earnings. That said, COVID fourth wave is a concern which may keep sentiment jittery.

Our top picks are LUCK, ENGRO, OGDC, PPL, FFC, HUBC, SNGP, HBL, MCB, NML, ILP, PSO, EPCL, PTL and UNITY.

The KSE-100 is currently trading at a PER of 6.7x (2021) compared to Asia Pac regional average of 16.1x while offering a dividend yield of ~6.6% versus ~2.4% offered by the region.

Courtesy – AHL Research