Outlook and recommendations for week commencing from July 26

In the future, experts expect the Pakistan stock market to remain range-bound to positive in the upcoming week attributable to the beginning of the result season, which will keep specific companies in the limelight.

On the other hand, E&P scrips could perform well due to higher international oil prices. However, pressure on the external account, rising infection ratio of a novel coronavirus in Pakistan and uptick in CPI in the upcoming months are downside risks to the index performance.

Our preferred stocks are SNGP, EPCL, PSO, OGDC, HUBC, HBL, MCB, FFC, LUCK, ACPL, ENGRO, MCB, INDU, UBL and ILP.

The KSE-100 is currently trading at a PER of 6.8x (2021) compared to the Asia Pac regional average of 16.1x while offering a dividend yield of ~6.6% versus ~2.4% provided by the region.

Courtesy – AHL Research


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