Greetings savvy investors, and welcome to the only guide you’ll need on which sectors you should consider for investment in Pakistan. Our research team has carefully analyzed Pakistan’s economy to identify the top 4 sectors that will offer the most fruitful investment opportunities in the local stock market. So let’s dive right in!
Oil and Gas Sector
The wheels of the oil and gas sector are set in motion, gaining momentum from the anticipated settlement of the gas circular debt. An impressive PkR 414 billion is poised to be reclaimed from the colossal PkR 1.27 trillion debt, revitalizing the sector’s fiscal vigor. Moreover, as gas tariffs are expected to rise, they pave the way for debt reduction, but also for greater liquidity in gas companies. If you want to stay updated regarding the updates of the oil and gas and other sectors in Pakistan, follow KTrade Securities on Linkedin.
In the oil and gas sector, we’re spotlighting OGDC, MARI, and PPL, with target prices of PkR 146 per share, 2931 per share, and 126 per share respectively.
Refinery Sector
The refinery sector is headed towards upgradation as the government has recently approved the brownfield refinery policy, igniting a spark of optimism. With this policy, local oil refineries are gearing up for improvement, with enhanced production capacities and amplified fuel output, coupled with a welcome reduction in furnace oil production. But that’s not all! The greenfield refinery policy is heralding approximately USD 10 billion in investments to erect brand-new refineries – a supply answer to the escalating demand for oil. More global and international news is also available on KTrade Global Markets on Facebook.
In the refinery sector, our star at this stage is none other than ATRL, with a target price of PkR 330 per share.
Banking Sector
The banking industry is heading towards robust financial outcomes with the expansion in net interest margins. In this high-interest-rate era, banks are crafting their profit-making strategies by charging greater spread between deposits and loans. They also wield the power of profits by investing in government bonds and T-bills, yielding a return of 22% to 23%. And don’t overlook the high-dividend stocks that this sector boasts! For more stocks that you should watch out for, watch our weekly video on the Best Stocks to Buy This Week.
In the banking sector, we have highlighted the stocks of MEBL, HBL, and BAFL.
Technology Sector
The technology sector is an oasis of opportunity where revenue flows in foreign currency, while input costs remain in the local currency. As the local Pakistani rupee depreciates, revenue for the Technology sector actually increases due to their costs remaining in PKR but their earnings increasing in value.
For the Technology sector, we have highlighted SYS, which boasts a global footprint and a clientele that spans diverse industries. This is a stock that thrives on diversity, promising a steady flow of earnings.
Conclusion
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