·         Jan’24 remained volatile month for the market, marked by a 0.76%WoW decline in the KSE100 index, closing at 61,979pts. Despite improving macro indicators, political uncertainty and significant foreign selling weighed down the market.

·         Amidst these challenges, positive economic indicators emerged as beacons of resilience. Current account surplus, improved foreign exchange reserves levels, and the IMF’s satisfaction in their review provided a counterpoint to the prevailing uncertainties.

·         CPI for Dec’23 recorded at 29.7%, and it is anticipated that the inflationary pressures will persist into Jan’24 at a level of 28.6%.

·         Flow-wise, foreign investors emerged as the predominant sellers, with a substantial net sell of US$37.2mn, erasing 52% of the 1HFY24 net FIPI inflows of US$71.0mn. Meanwhile, insurance companies absorbed most of the selling with total net buy of US$28.9mn during Jan’24.

·         Sector-wise, Automobile parts and Transports sectors remained favorite, with robust total monthly returns of 18.6% and 16.9%, respectively. On the contrary, Refinery, the Glass & Ceramics and Technology sectors experienced declines of 13.0, 10.9% and 9.9%, respectively.

·         Overall, we remain bullish sentiments on the Banks, E&P, and OMC sectors, foreseeing opportunities for potential earnings growth and attractive Dividend Yields.

 Courtesy – AKD Research