We expect the market to retain the positive momentum in the coming week. The monetary policy announcement is scheduled in the upcoming week, where we expect policy rate to remain unchanged at 22%. Furthermore, the scrips continue to trade at attractive levels, which could further entice investors. Furthermore, over last ten years, seven times the market has closed positively in the month of December. Keeping in view the momentum, we expect the market to close positively this month.

Our preferred stocks are OGDC, PPL, MARI, MCB, UBL, MEBL, FABL, HBL LUCK, MLCF, FCCL, FFC, HUBC, PSO and INDU. The KSE-100 is currently trading at a PER of 4.4x (2024) as compared to its 5-year average of 5.9x offering a dividend yield of ~10.4% as compared to its 5-year average of ~6.0%.

Courtesy – AHL Research