Market Outlook: Valuations attractive, Downside still open

  • Market has lost over 2,000 points in one month period

Excessive concerns over Economic Slow Down and deteriorating Political situation led over 2,000 points (-5%) decline in the preceding one month period.

The index faced a bearish session. The local bourse remained under pressure during the last trading session.

The technical charts formation points out that index could experience some more pressure in coming trading sessions, however, Index Can rise going onwards. The initial support can be found near 36,700. A break below mentioned support could drag the index towards 36,350

Market is expecting a slight bounce back after several bearish sessions as the announcement of asset declaration scheme, better monthly trade numbers & Upcoming Result Season kicking off from this week likely to bring some positivity in the market.

Rise in International Crude Oil price can lead Energy and Power Stocks to perform positively.

Analysts Pitch

Stock Market Analysts are advising to take exposure only in those stocks which stands to benefit from existing macro environment. Analsysts recommend to accumulate Banks (UBL, HBL, MCB) being net beneficiary of interest rate increase, Energy & Power Shares (OGDC, PPL & POL) on attractive valuations and rising crude Oil prices, Textiles (NCL, NML, GATM) on benefit from higher exports and Rupee devaluation.

Fertilizers (FFC & FFBL) being beneficiary of reduction in GIDC, better farmer economics and supply constraints of urea.


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