Pakistan stock reacts positively – opens with 1400 points

The PTI government was ousted over the weekend, losing its majority in the National Assembly. PML-N’s Shehbaz Sharif will likely to elected Prime Minister later today.

The KSE100 lifted by 1.5% on Friday, and the PKR also strengthened in hopes that the new government will seek to tackle the economy quickly. Top-down risks remain, and cuts to analyst estimates will likely come through, but the bad seems to already be in the price.

We anticipate a rally in the near term and expect the KSE100 to make a strong move towards the 50k points mark in the next few months. We would look to add selected cyclical to the portfolio, with MLCF, LUCK, MUGHAL and TGL looking good.

Preferred defensives include UBL, FFC and HUBC.

Courtesy – IMS Research



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