IGI Securities Limited – Day Break

Karachi, February 01, 2019 (PPI-OT): Monetary Policy Statement – Monetary Policy Tightened Further by 25bps (+450bps Hike Cycle), Against Broader Market Consensus

In its recently announced Monetary Policy Statement (MPS), the State Bank of Pakistan (SBP) has increased policy rate by +25bps

We see Steel, followed by Fertilizer, as most effected on earning basis given high debt levels while positive implication holds for Banks, with mid-tier banks (BAHL, BAFL and FABL) preferred over large banks, due to their positive fund gap.