Karachi is set to observe a more stringent lockdown in place next week to contain the highly contagious delta variant of the novel coronavirus, and it appears the market may remain upwards sticky in the short term. Albeit, with the result season commencing, and cyclicals expected to post a robust jump in earnings on a YoY basis (given a nation-wise lockdown was enforced in 2Q last year), certain select stocks may come under limelight.

The KSE-100 index is currently trading at a PER of 6.7x (2021) compared to Asia Pac regional average of 15.8x and offering a DY of ~6.7% versus ~2.4% offered by the region.

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

Courtesy – AHL Research