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Intermarket Pulse: Pakistan Market: Mar’18: Reignited by PKR slip

• An eventful March concluded with 5.4% returns for the Pakistan Market. For all the political noise and pressure on Fx reserves, the KSE-100 is now up 12.6%CYTD. Although foreign investors were net sellers again (US$22.4mn), this masks the net buy of US$10.7mn in the aftermath of the PKR’s 4% slip on 20 Mar’18
• In the Senate elections, PML-N emerged as the largest party but was outwitted by the Opposition for the election of Senate Chairman. On the macro front, SBP maintained the policy rate, taking on an optimistic stance on the recent policy measures to contain the C/A deficit. 
• We have a constructive view on the Pakistan Market across 2018 where we thematically prefer sectors that are expected to show strong earnings growth in 2019. Banks, Oil & Gas, Textiles and Steel. Names we like include BAFL, PSO, PPL, ENGRO, NML, HUBC, ASTL and MUGHAL.