Pakistan’s 100 Index braces for impact as political rhetoric, macro woes aggravate

Foundation Securities revises KSE -100 index target to 47,700 points – from 49,500 points – incorporating increasing headwinds citing growing uncertainty.

Mr. Nauman Khan of Foundation Securities in his Pakistan Strategy report today said that, “We have scaled down our Dec-18 index target to 47,700pts previously from 49,500pts. Target multiple of 8.5x (-1 STDEV of last 10-years avg PE of 10.5x) has remained unchanged, revision comes from (1) lower earnings print and (2) lower dividend contribution.”

According to Mr. Nauman, index is vulnerable on multiple fronts including politics, macros affecting sentiments, and uncertain global conditions amongst others.