The market is in a consolidation mode after successful IMF review and offers attractive valuations here. On the political front, the US emphasized its strategic partnership with Pakistan, clarifying Pakistan does not need to choose between the US and China.

On the economic front, IMF has projected Pakistan’s real GDP growth at 4% 2021-22 against the 5% to 5.5% projected by the government. Moreover, HCAR will remain in the limelight as it reveals ‘tentative’ prices for its next-generation Civic that would feature three 1.5-litre variants starting priced between PKR5.1-6.1mn.

We would continue to recommend accumulation in Banks (BAFL, UBL, HBL, MEBL), Cements (PIOC, LUCK, MLCF, DGKC), Tech (SYS, OCTOPUS), Textile (GATM, ILP), Power (KAPCO, HUBCO) and Fertilizers (EFERT).

Courtesy – IMS Research