We reiterate our favorable outlook on local equities given attractive market valuations, healthy dividend yields and the ongoing corporate results season. However, investors will likely remain cautious given the continuous surge in global commodity prices and uncertainty on the geopolitical front.

Consequently, any short-term dips should be taken as an opportunity to accumulate scrips in Banks, E&P’s, Fertilizers, Technology and Textiles in our view.

On the other hand, PKR (REER at 97.3) has remained largely stable over the last few weeks but can be subject to further weakening given the alarming rise in global oil prices that are putting CAD under pressure.

Courtesy- BMA Research