The KSE100 has slipped this week, tracking renewed PKR depreciation. Today, it could be impacted by the surge in T-Bill yields, by 55-70bps vs. the previous auction to 13.50%-13.85%, again opening up a sizeable gap vs. the SBP’s Policy Rate at 12.25%. However, support could come through from the government’s desire to resume the IMF program (new finance minister on his way for IMF meetings), as well as a possible rebound in Index heavyweight banks such as HBL which has clarified that its high admin expenses in 1Q22 contained a sizeable one-off.

Moreover, Fertilizer sector to remain in limelight as EFERT increased Urea prices by PKR100/bag which would have an annualized earning impact of PKR 2.16/sh and 2.66/sh for EFERT and FFC respectively.

Courtesy – Intermarket Securities Limited