Following the disbursement of the tranche by the IMF, the government is expected to unlock further foreign economic assistance from various international creditors and flood relief aid from friendly countries and other financial institutions.

However, the investor will remain cautious given the current overall socio-economic situation of the country. We expect the market to be range bound in the upcoming week. We expect the market to be range bound in the forthcoming week.

Our preferred stocks are OGDC, PPL, MARI, MCB, FABL, MEBL, BAFL, LUCK, MLCF, FCCL, ENGRO, FFC, HUBC, PSO, HUMNL and SNGP.

The KSE-100 is currently trading at a PER of 4.2x (2023) compared to the Asia Pac regional average of 12.5x while offering a dividend yield of ~9.6% versus ~2.7% offered by the region.

Courtesy – AHL Research