Dear Clients,

KSE-100 breathed a sigh of relief. Or perhaps a dead-cat bounce? Calling “enough is enough”, the value-hunters emerged to the buying spree since morning. Cements, Steel, Glass & Autos saw a synchronized positivity. Extremely volatility was witnessed in TRG & Netsol. Stocks closing deep-red today were Ghani Glass, Azgard 9 & JSCL.

KSE-100 closed up by 1,008.32 points to 43,788.08 levels with 169.8mn volumes. Highest activity was recorded in UNITY (+5.02%) with 88.2mn shares traded, TRG (-0.28%) with 38.8mn shares and JSCL (-7.46%) with 17.7mn shares traded.

Market direction remains choppy contingent upon today’s Senate Election results. The win of Coalition would bring legislative powers & should provide regime stability. PDM”s win would heighten the uncertainty impeding government’s effort to enact reforms amid PDM marches.

The valuations have become too attractive for medium & long term buyers. With currency stability, manageable SBP FX reserves, potential IMF & global bond payment & sequential quarterly earnings growth, the upside seems more than the downside. Asset values – specially with respect to low risk-free rate – are still good entry points and yet to mature.

KASB Research